Current Version - 4th Engrossment

Line 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72.25172.26172.27172.28172.29172.30172.31172.32172.33172.34173.1173.2173.3173.4173.5173.6173.7173.8173.9173.10173.11173.12173.13173.14173.15173.16173.17173.18173.19173.20173.21173.22173.23173.24173.25173.26173.27173.28173.29173.30173.31173.32173.33173.34173.35173.36174.1174.2174.3174.4174.5174.6174.7174.8174.9174.10174.11174.12174.13174.14174.15174.16174.17174.18174.19174.20174.21174.22174.23174.24174.25174.26174.27174.28174.29174.30174.31174.32174.33174.34174.35175.1175.2175.3175.4175.5175.6175.7175.8175.9175.10175.11175.12175.13175.14175.15175.16175.17175.18175.19175.20175.21175.22175.23175.24175.25175.26175.27175.28175.29175.30175.31175.32176.1176.2176.3176.4176.5176.6176.7176.8176.9176.10176.11176.12176.13176.14176.15176.16176.17176.18176.19176.20176.21176.22176.23176.24176.25176.26176.27176.28176.29176.30176.31176.32176.33177.1177.2177.3177.4177.5177.6177.7177.8177.9177.10177.11177.12177.13177.14177.15177.16177.17177.18177.19177.20177.21177.22177.23177.24177.25177.26177.27177.28177.29177.30177.31177.32178.1178.2178.3178.4178.5178.6178.7178.8178.9178.10178.11178.12178.13178.14178.15178.16178.17178.18178.19178.20178.21178.22178.23178.24178.25178.26178.27178.28178.29178.30178.31178.32178.33178.34

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginJOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.new text end

new text beginThe amounts shown in this section summarize direct appropriations, by fund, made in this article.new text end

new text begin2016new text end

new text begin2017new text end

new text beginTotalnew text end

new text beginGeneralnew text end

new text begin$new text end

new text begin166,255,000new text end

new text begin$new text end

new text begin165,521,000new text end

new text begin$new text end

new text begin331,776,000new text end

new text beginWorkforce Developmentnew text end

new text begin33,932,000new text end

new text begin30,165,000new text end

new text begin64,097,000new text end

new text beginRemediationnew text end

new text begin700,000new text end

new text begin700,000new text end

new text begin1,400,000new text end

new text beginWorkers' Compensation new text end

new text begin27,325,000new text end

new text begin29,325,000new text end

new text begin56,650,000new text end

new text beginSpecial Revenuenew text end

new text begin35,648,000new text end

new text begin36,110,000new text end

new text begin71,758,000new text end

new text beginPetroleum Tank Releasenew text end

new text begin1,052,000new text end

new text begin1,052,000new text end

new text begin2,104,000new text end

new text beginTotalnew text end

new text begin$new text end

new text begin264,912,000new text end

new text begin$new text end

new text begin262,873,000new text end

new text begin$new text end

new text begin527,785,000new text end

Sec. 2. new text beginJOBS AND ECONOMIC DEVELOPMENT.new text end

new text beginThe sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2016" and "2017" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017. "The biennium" is fiscal years 2016 and 2017.new text end

new text beginAPPROPRIATIONSnew text end

new text beginAvailable for the Yearnew text end

new text beginEnding June 30new text end

new text begin2016new text end

new text begin2017new text end

Sec. 3. new text beginDEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENTnew text end

new text beginSubdivision 1.new text end

new text beginTotal Appropriationnew text end

new text begin$new text end

new text begin101,882,000new text end

new text begin$new text end

new text begin101,319,000new text end

new text beginAppropriations by Fundnew text end

new text begin2016new text end

new text begin2017new text end

new text beginGeneralnew text end

new text begin68,279,000new text end

new text begin71,483,000new text end

new text beginRemediationnew text end

new text begin700,000new text end

new text begin700,000new text end

new text beginWorkforce Developmentnew text end

new text begin32,903,000new text end

new text begin29,136,000new text end

new text beginThe amounts that may be spent for each purpose are specified in the following subdivisions.new text end

new text beginSubd. 2.new text end

new text beginBusiness and Community Developmentnew text end

new text begin33,666,000new text end

new text begin44,870,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin32,281,000new text end

new text begin43,485,000new text end

new text beginRemediationnew text end

new text begin700,000new text end

new text begin700,000new text end

new text beginWorkforce Developmentnew text end

new text begin685,000new text end

new text begin685,000new text end

new text begin(a) $8,000,000 in fiscal year 2016 and $15,000,000 in fiscal year 2017 are for the Minnesota investment fund under Minnesota Statutes, section 116J.8731. Of this amount, the commissioner may use up to three percent for administrative expenses and technology updates. This appropriation is available until June 30, 2019.new text end

new text begin(1) Of the amount appropriated in fiscal year 2016, $2,000,000 is for a loan to construct a $10,000,000 aircraft manufacturing facility. Funds available under this section may be used for purchases of materials and supplies made from July 1, 2015, through June 30, 2016, which are directly related to the construction of the aircraft manufacturing facility. The loan under this clause is not subject to the limitations under Minnesota Statutes, section 116J.8731, subdivision 5. The commissioner shall forgive the loan after verification that the project has satisfied performance goals and contractual obligations as required under Minnesota Statutes, section 116J.8731, subdivision 7. The amount available under this clause is available until June 30, 2019.new text end

new text begin(2) Of the amount appropriated in fiscal year 2016, $2,000,000 is for grants to cities for broadband infrastructure and other eligible expenses, as identified in Minnesota Statutes, section 116J.395, subdivision 2, for a wire-line broadband infrastructure demonstration project that is part of a public-private partnership.new text end

new text begin(3) In order to be awarded the broadband infrastructure grant under clause (2), a city must demonstrate:new text end

new text begin(i) funding from nonstate sources that matches the amount appropriated in clause (2);new text end

new text begin(ii) broadband service outages of 12 hours or more in the area within its jurisdiction;new text end

new text begin(iii) a decline in the number of businesses in the area within its jurisdiction, as a result of the lack of adequate broadband service; andnew text end

new text begin(iv) an agreement that the city will own the broadband infrastructure as part of the public-private partnership.new text end

new text begin(4) The commissioner of employment and economic development must award the broadband infrastructure grant under clause (2) before September 1, 2015.new text end

new text begin(b) $7,500,000 in fiscal year 2016 and $12,500,000 in fiscal year 2017 are for the Minnesota job creation fund under Minnesota Statutes, section 116J.8748. Of this amount, the commissioner of employment and economic development may use up to three percent for administrative expenses. This appropriation is available until June 30, 2019.new text end

new text begin(c) $1,272,000 each year is from the general fund for contaminated site cleanup and development grants under Minnesota Statutes, sections 116J.551 to 116J.558. This appropriation is available until June 30, 2019.new text end

new text begin(d) $700,000 each year is from the remediation fund for contaminated site cleanup and development grants under Minnesota Statutes, sections 116J.551 to 116J.558. This appropriation is available until June 30, 2019.new text end

new text begin(e) $1,425,000 each year is from the general fund for the business development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the business development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.new text end

new text begin(f) $4,195,000 each year is from the general fund for the Minnesota job skills partnership program under Minnesota Statutes, sections 116L.01 to 116L.17. If the appropriation for either year is insufficient, the appropriation for the other year is available. This appropriation is available until June 30, 2019.new text end

new text begin(g) $1,000,000 each year is from the general fund for a grant to Enterprise Minnesota, Inc. Of this amount, $750,000 each year is for the small business growth acceleration program under Minnesota Statutes, section 116O.115, and $250,000 each year is for operations and administration.new text end

new text begin(h) $150,000 each year is from the general fund for the Center for Rural Policy and Development.new text end

new text begin(i) $1,373,000 in fiscal year 2016 is for the workforce housing grants pilot program in Laws 2014, chapter 308, article 6, section 14. This appropriation is onetime and is available until June 30, 2018. The commissioner of employment and economic development may use up to five percent for administrative costs.new text end

new text begin(j) $2,500,000 in fiscal year 2016 and $2,500,000 in fiscal year 2017 are from the general fund for grants for the workforce housing development program in Minnesota Statutes, section 116J.549. Of these amounts, the commissioner may use up to five percent for administrative expenses. The appropriations in fiscal years 2016 and 2017 are available until June 30, 2018.new text end

new text begin(k) $200,000 in fiscal year 2016 and $200,000 in fiscal year 2017 are from the general fund for a grant to develop and implement a southern and southwestern Minnesota initiative foundation collaborative pilot project. Funds available under this section must be used to support and develop entrepreneurs in diverse populations in southern and southwestern Minnesota. This is a onetime appropriation.new text end

new text begin(l) $750,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017 are from the general fund for the greater Minnesota business development public infrastructure grant program under Minnesota Statutes, section 116J.431. Funds available under this paragraph may be used for site preparation of property owned and to be used by private entities. The base for this program is $2,000,000 each year beginning in fiscal year 2018.new text end

new text begin(m) $173,000 in fiscal year 2016 is from the general fund for the innovation voucher pilot program under Laws 2014, chapter 312, article 2, section 2, subdivision 2, paragraph (j). This is a onetime appropriation.new text end

new text begin(n) $300,000 in fiscal year 2016 and $300,000 in fiscal year 2017 are from the workforce development fund to the commissioner of employment and economic development for a grant to the small business development center hosted at Minnesota State University, Mankato, for a collaborative initiative with the Regional Center for Entrepreneurial Facilitation. Funds available under this paragraph must be used to provide entrepreneur and small business development direct professional business assistance services in the following counties in Minnesota: Blue Earth, Brown, Faribault, Le Sueur, Martin, Nicollet, Sibley, Watonwan, and Waseca. For the purposes of this paragraph, "direct professional business assistance services" must include, but is not limited to, pre-venture assistance for individuals considering starting a business. This appropriation is not available until the commissioner determines that an equal amount is committed from nonstate sources. Any balance in the first year does not cancel and is available for expenditure in the second year. Grant recipients shall report to the commissioner by February 1 of each year and include information on the number of customers served in each county; the number of businesses started, stabilized, or expanded; the number of jobs created and retained; and business success rates in each county. By April 1 of each year, the commissioner shall report the information submitted by grant recipients to the chairs of the standing committees of the house of representatives and the senate having jurisdiction over economic development issues. This is a onetime appropriation. This language does not expire.new text end

new text begin(o) $385,000 in fiscal year 2016 and $385,000 in fiscal year 2017 are from the workforce development fund for grants to the Neighborhood Development Center. Of this amount, $300,000 is for training, lending and business services for aspiring business owners, and expansion of services for immigrants in suburban communities; and $85,000 is for Neighborhood Development Center model outreach and training activities in greater Minnesota. This is a onetime appropriation.new text end

new text beginSubd. 3.new text end

new text beginWorkforce Developmentnew text end

new text begin21,388,000new text end

new text begin17,621,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin1,000,000new text end

new text begin1,000,000new text end

new text beginWorkforce Developmentnew text end

new text begin20,388,000new text end

new text begin16,621,000new text end

new text begin(a) $3,283,000 each year is from the workforce development fund for the adult workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the adult workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.new text end

new text begin(b) $3,500,000 each year is from the workforce development fund for the Minnesota youth program under Minnesota Statutes, sections 116L.56 and 116L.561.new text end

new text begin(c) $1,000,000 each year is from the workforce development fund for the youthbuild program under Minnesota Statutes, sections 116L.361 to 116L.366.new text end

new text begin(d) $200,000 each year is from the workforce development fund for a grant to Minnesota Diversified Industries, Inc., to provide progressive development and employment opportunities for people with disabilities.new text end

new text begin(e) $2,848,000 each year is from the workforce development fund for the youth workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.new text end

new text begin(f) $1,500,000 each year is from the workforce development fund for a grant to FastTRAC - Minnesota Adult Careers Pathways Program for low-skilled, low-income adults. Up to ten percent of this appropriation may be used to provide leadership, oversight, and technical assistance services.new text end

new text begin(g) $650,000 each year is from the workforce development fund for the Opportunities Industrialization Center (OIC) programs. Of this appropriation, $500,000 each year shall be divided equally among the eligible centers. Of this appropriation, $75,000 each year is for the East Metro OIC in St. Paul and $75,000 each year is for the Northwest Indian OIC in Bemidji. This is a onetime appropriation.new text end

new text begin(h) $850,000 each year is from the workforce development fund for a grant to the Minnesota Alliance of Boys and Girls Clubs to administer a statewide project of youth jobs skills development. This project, which may have career guidance components, including health and life skills, is to encourage, train, and assist youth in job-seeking skills, workplace orientation, and job-site knowledge through coaching. This grant requires a 25 percent match from nonstate resources. This is a onetime appropriation.new text end

new text begin(i) $250,000 each year is from the general fund for the publication, dissemination, and use of labor market information under Minnesota Statutes, section 116J.4011. new text end

new text begin(j) $250,000 each year is from the general fund for programs in the workforce service areas to combine career and higher education advising.new text end

new text begin(k) $250,000 each year is from the workforce development fund for a grant to Big Brothers Big Sisters of the Greater Twin Cities for workforce readiness, employment exploration, and skills development for youth ages 12 to 21. The grant must serve youth in the Twin Cities, central Minnesota and southern Minnesota Big Brothers Big Sisters chapters. This is a onetime appropriation.new text end

new text begin(l) $900,000 in fiscal year 2016 and $1,100,000 in fiscal year 2017 are from the workforce development fund for a grant to the Minnesota High Tech Association to support SciTechsperience, a program that supports science, technology, engineering, and math (STEM) internship opportunities for two- and four-year college students in their field of study. The internship opportunities must match students with paid internships within STEM disciplines at small, for-profit companies located in the seven-county metropolitan area, having fewer than 150 total employees; or at small or medium, for-profit companies located outside of the seven-county metropolitan area, having fewer than 250 total employees. At least 200 students must be matched in the first year and at least 250 students must be matched in the second year. Selected hiring companies shall receive from the grant 50 percent of the wages paid to the intern, capped at $2,500 per intern. The program must work toward increasing the participation among women or other underserved populations.new text end

new text begin(m) $500,000 each year is from the workforce development fund for a grant to Resource, Inc. to provide low-income individuals career education and job skills training that are fully integrated with chemical and mental health services.new text end

new text begin(n) $140,000 each year is from the workforce development fund for a grant to the St. Cloud Area Somali Salvation Organization for youth development and crime prevention activities. Grant funds may be used to train and place mentors in elementary and secondary schools; for athletic, social, and other activities to foster leadership development; to provide a safe place for participating youth to gather after school, on weekends, and on holidays; and activities to improve the organizational and job readiness skills of participating youth.new text end

new text begin(o) $200,000 in fiscal year 2016 is from the workforce development fund for the uniform outcome report card requirements under Minnesota Statutes, section 116L.98. This is a onetime appropriation.new text end

new text begin(p) $500,000 in fiscal year 2016 and $500,000 in fiscal year 2017 are from the general fund for job training grants under Minnesota Statutes, section 116L.42.new text end

new text begin(q) $2,000,000 in fiscal year 2016 is from the workforce development fund for adult workforce employment and training activities administered by workforce service areas. Funds available under this paragraph must be used by workforce service areas in the same manner as provided for under Public Law 113-128, sections 133 and 134. Of the amount available under this paragraph, $500,000 is for workforce service area number 1, $1,000,000 is for workforce service area number 2, and $500,000 is for workforce service area number 6. This is a onetime appropriation.new text end

new text begin(r) $517,000 in fiscal year 2016 is from the workforce development fund for a grant to YWCA St. Paul for training and job placement assistance, including commercial driver's license training, through the job placement and retention program. This is a onetime appropriation.new text end

new text begin(s) $450,000 in fiscal year 2016 and $450,000 in fiscal year 2017 are from the workforce development fund for performance grants under Minnesota Statutes, section 116J.8747, to Twin Cities RISE! to provide training to hard-to-train individuals. This is a onetime appropriation.new text end

new text begin(t) $350,000 in fiscal year 2016 and $350,000 in fiscal year 2017 are from the workforce development fund for the urban initiative loan program in Minnesota Statutes, section 116M.18. This is a onetime appropriation.new text end

new text begin(u) $250,000 in fiscal year 2016 is from the workforce development fund for the foreign-trained health care professionals grant program modeled after the pilot program conducted under Laws 2006, chapter 282, article 11, section 2, subdivision 12, to encourage state licensure of foreign-trained health care professionals, including: physicians, with preference given to primary care physicians who commit to practicing for at least five years after licensure in underserved areas of the state; nurses; dentists; pharmacists; mental health professionals; and other allied health care professionals. The commissioner must collaborate with health-related licensing boards and Minnesota workforce centers to award grants to foreign-trained health care professionals sufficient to cover the actual costs of taking a course to prepare health care professionals for required licensing examinations and the fee for the state licensing examinations. When awarding grants, the commissioner must consider the following factors:new text end

new text begin(1) whether the recipient's training involves a medical specialty that is in high demand in one or more communities in the state;new text end

new text begin(2) whether the recipient commits to practicing in a designated rural area or an underserved urban community, as defined in Minnesota Statutes, section 144.1501;new text end

new text begin(4) any additional criteria established by the commissioner.new text end

new text beginThis is a onetime appropriation and is available until June 30, 2019.new text end

new text begin(v) $800,000 in fiscal year 2016 is from the workforce development fund for the customized training program for manufacturing industries under Minnesota Statutes, section 116L.65. This is a onetime appropriation and is available in either year of the biennium. Of this amount:new text end

new text begin(1) $350,000 is for a grant to Central Lakes College for the purposes of this paragraph;new text end

new text begin(2) $250,000 is for Minnesota West Community and Technical College for the purposes of this paragraph; andnew text end

new text begin(3) $200,000 is for South Central College for the purposes of this paragraph.new text end

new text begin(w) $200,000 in fiscal year 2016 is from the workforce development fund for a grant to the UMMAH Project, Inc. to develop and implement a pilot program to provide Somali youth development and crime prevention activities including, but not limited to:new text end

new text begin(1) mentoring for Somali youth;new text end

new text begin(2) promoting social and other activities to foster youth development and to provide a safe place for participating youth to gather;new text end

new text begin(3) leadership training through development of a youth leadership council to assist and prepare Somali youth to be active and culturally vibrant leaders in building safe and sustainable Somali communities; new text end

new text begin(4) collaborating with an organization to provide college and job readiness information technology skills for Somali youth; andnew text end

new text begin(5) planning for a center for Somali youth and families focused on culturally appropriate workforce development, health, education, recreation, and social programs within the community. This is a onetime appropriation.new text end

new text beginSubd. 4.new text end

new text beginGeneral Support Servicesnew text end

new text begin1,362,000new text end

new text begin1,362,000new text end

new text begin(a) $875,000 each year is for the Olmstead Implementation Office.new text end

new text begin(b) $150,000 in fiscal year 2016 is appropriated from the energy fund account established in Minnesota Statutes, section 116C.779, to the commissioner of employment and economic development for the purpose of conducting the public power authority study in article 11.new text end

new text beginSubd. 5.new text end

new text beginMinnesota Trade Officenew text end

new text begin1,972,000new text end

new text begin1,972,000new text end

new text begin(a) $300,000 each year is for the STEP grants in Minnesota Statutes, section 116J.979.new text end

new text begin(b) $180,000 each year is for the Invest Minnesota Marketing Initiative in Minnesota Statutes, section 116J.9781.new text end

new text beginSubd. 6.new text end

new text beginVocational Rehabilitationnew text end

new text begin29,319,000new text end

new text begin29,319,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin17,489,000new text end

new text begin17,489,000new text end

new text beginWorkforce Developmentnew text end

new text begin11,830,000new text end

new text begin11,830,000new text end

new text begin(a) $10,800,000 each year is from the general fund for the state's vocational rehabilitation program under Minnesota Statutes, chapter 268A.new text end

new text begin(b) $2,261,000 each year is from the general fund for grants to centers for independent living under Minnesota Statutes, section 268A.11.new text end

new text begin(c) $2,873,000 each year from the general fund and $10,830,000 each year from the workforce development fund is for extended employment services for persons with severe disabilities under Minnesota Statutes, section 268A.15. For the allocation of funds under this paragraph and for the purposes of sections 268A.03, clause (1); 268A.06; 268A.085; and 268A.15, a "community rehabilitation provider" or "facility" means a nonprofit or public entity that provides at least one extended employment subprogram for persons with the most significant disabilities.new text end

new text begin(d) $1,555,000 each year is from the general fund for grants to programs that provide employment support services to persons with mental illness under Minnesota Statutes, sections 268A.13 and 268A.14.new text end

new text begin(e) $1,000,000 each year is from the workforce development fund for grants under Minnesota Statutes, section 268A.16, for employment services for persons, including transition-aged youth, who are deaf, deafblind, or hard of hearing.new text end

new text beginSubd. 7.new text end

new text beginServices for the Blindnew text end

new text begin5,925,000new text end

new text begin5,925,000new text end

new text beginSubd. 8.new text end

new text beginCompetitive grant limitationsnew text end

new text beginAn organization that receives a direct appropriation under this section is not eligible to participate in competitive grant programs under this section during the fiscal years in which the direct appropriations are received.new text end

new text beginSubd. 9.new text end

new text beginBroadband developmentnew text end

new text begin8,250,000new text end

new text begin250,000new text end

new text begin(a) $250,000 each year is for the Broadband Development Office.new text end

new text begin(b) $8,000,000 the first year is from the general fund for deposit in the border-to-border broadband fund account created under Minnesota Statutes, section 116J.396, for the purposes provided in Minnesota Statutes, section 116J.395. This is a onetime appropriation and is available until June 30, 2019.new text end

Sec. 4. new text beginHOUSING FINANCE AGENCYnew text end

new text beginSubdivision 1.new text end

new text beginTotal Appropriationnew text end

new text begin$new text end

new text begin43,775,000new text end

new text begin$new text end

new text begin43,775,000new text end

new text begin(a) The amounts that may be spent for each purpose are specified in the following subdivisions.new text end

new text begin(b) Unless otherwise specified, this appropriation is for transfer to the housing development fund for the programs specified in this section. Except as otherwise indicated, this transfer is part of the agency's permanent budget base.new text end

new text begin(c) The Housing Finance Agency must make continuous improvements to its ongoing efforts to reduce the racial and ethnic inequalities in home-ownership rates and must seek opportunities to deploy increasing levels of resources toward these efforts.new text end

new text beginSubd. 2.new text end

new text beginChallenge Programnew text end

new text begin10,425,000new text end

new text begin10,425,000new text end

new text begin(a) This appropriation is from the general fund for transfer to the housing development fund for the economic development and housing challenge program under Minnesota Statutes, section 462A.33. The agency must continue to strengthen its efforts to address the disparity rate between white households and indigenous American Indians and communities of color.new text end

new text begin(b) Of this amount, $5,213,000 each year is for loans and grants for workforce housing in communities that:new text end

new text begin(1) have an average vacancy rate for rental housing of five percent or less for the preceding two years;new text end

new text begin(2) propose to build market rate residential rental properties that do not have federal or state law requirements for income limits and that are not proposing to use federal, state, or local flood recovery assistance;new text end

new text begin(3) are located outside of the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, and have a population greater than 500 people; andnew text end

new text begin(4) have a written statement provided by a business or businesses located in the city or within 25 miles of the city where the project is proposed that employs a minimum of 20 full-time equivalent employees in aggregate indicating that the lack of available rental housing has impeded their ability to recruit and hire employees.new text end

new text beginOn July 15, 2017, any remaining balance of appropriations under this paragraph that are unobligated on July 1, 2017, is transferred from the housing development fund to the general fund. By January 15 of each fiscal year, the commissioner must submit a report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over housing finance and economic development specifying the selection criteria of awarding grants and loans, the projects that received funding under this paragraph, and how the funds are being used.new text end

new text begin(c) Notwithstanding Minnesota Statutes, section 462A.33, loans and grants made in paragraph (b) for workforce housing shall not be subject to the requirements in Minnesota Statutes, section 462A.33, subdivision 3 or 5, except that preference may be given to proposals that include contributions from nonstate resources for the greatest portion of the total development cost. Notwithstanding Minnesota Statutes, section 462A.33, the limitations on return of eligible mortgagors under Minnesota Statutes, section 462A.03, subdivision 13, do not apply to loans and grants under paragraph (b) or loans or grants for targeted workforce housing under this section. Notwithstanding any other law, nothing shall prevent the award of grants or loans in this section from being used to finance new modular homes, new manufactured homes, and new manufactured homes on leased land or in a manufactured home park.new text end

new text begin(d) Of this amount, $2,606,000 each year is for economic development and housing challenge program grants and loans for housing projects outside of the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2.new text end

new text begin(e) Of this amount, $2,606,000 each year is for economic development and housing challenge program grants and loans for housing projects in the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2.new text end

new text begin(f) Priority shall be given to programs and projects under this subdivision that are land trust programs and programs that work in coordination with a land trust program.new text end

new text begin(g) The commissioner of housing finance must increase administrative support offered by the agency to assist smaller communities to improve access to grants and loans made using funds from the economic development and housing challenge program and to create and implement a streamlined review and awards process that allows smaller communities to use the resources available to them to complete applications and comply with program requirements. The commissioner must increase outreach to communities outside the metropolitan area that have low vacancy rates and report back on the progress of assisting these communities to the chairs and ranking minority members of the standing committees of the senate and house of representatives having jurisdiction over housing finance and economic development by December 1, 2015.new text end

new text beginSubd. 3.new text end

new text beginHousing Trust Fundnew text end

new text begin10,276,000new text end

new text begin10,276,000new text end

new text beginThis appropriation is for deposit in the housing trust fund account created under Minnesota Statutes, section 462A.201, and may be used for the purposes provided in that section. To the extent that these funds are used for the acquisition of housing, the agency shall give priority among comparable projects to projects that focus on creating safe and stable housing for homeless youth or projects that provide housing to trafficked women and children.new text end

new text beginSubd. 4.new text end

new text beginRental Assistance for Mentally Illnew text end

new text begin2,838,000new text end

new text begin2,838,000new text end

new text beginThis appropriation is for the rental housing assistance program under Minnesota Statutes, section 462A.2097.new text end

new text beginSubd. 5.new text end

new text beginFamily Homeless Preventionnew text end

new text begin7,862,000new text end

new text begin7,862,000new text end

new text beginThis appropriation is for the family homeless prevention and assistance programs under Minnesota Statutes, section 462A.204.new text end

new text beginSubd. 6.new text end

new text beginHome Ownership Assistance Fundnew text end

new text begin830,000new text end

new text begin830,000new text end

new text beginThis appropriation is for the home ownership assistance program under Minnesota Statutes, section 462A.21, subdivision 8. The agency shall continue to strengthen its efforts to address the disparity gap in the homeownership rate between white households and indigenous American Indians and communities of color.new text end

new text beginSubd. 7.new text end

new text beginAffordable Rental Investment Fundnew text end

new text begin4,218,000new text end

new text begin4,218,000new text end

new text begin(a) This appropriation is for the affordable rental investment fund program under Minnesota Statutes, section 462A.21, subdivision 8b, to finance the acquisition, rehabilitation, and debt restructuring of federally assisted rental property and for making equity takeout loans under Minnesota Statutes, section 462A.05, subdivision 39.new text end

new text begin(b) The owner of federally assisted rental property must agree to participate in the applicable federally assisted housing program and to extend any existing low-income affordability restrictions on the housing for the maximum term permitted. The owner must also enter into an agreement that gives local units of government, housing and redevelopment authorities, and nonprofit housing organizations the right of first refusal if the rental property is offered for sale. Priority must be given among comparable federally assisted rental properties to properties with the longest remaining term under an agreement for federal assistance. Priority must also be given among comparable rental housing developments to developments that are or will be owned by local government units, a housing and redevelopment authority, or a nonprofit housing organization.new text end

new text begin(c) This appropriation also may be used to finance the acquisition, rehabilitation, and debt restructuring of existing supportive housing properties. For purposes of this subdivision, "supportive housing" means affordable rental housing with links to services necessary for individuals, youth, and families with children to maintain housing stability.new text end

new text beginSubd. 8.new text end

new text beginHousing Rehabilitationnew text end

new text begin2,772,000new text end

new text begin2,772,000new text end

new text beginThis appropriation is for housing assistance for the rehabilitation of single-family homes under the housing rehabilitation program under Minnesota Statutes, section 462A.05, subdivision 14.new text end

new text beginSubd. 9.new text end

new text beginRental Rehabilitationnew text end

new text begin3,138,000new text end

new text begin3,138,000new text end

new text beginThis appropriation is for the rental housing rehabilitation loan program under Minnesota Statutes, section 462A.05, subdivision 14.new text end

new text beginSubd. 10.new text end

new text beginHomeownership Education, Counseling, and Trainingnew text end

new text begin791,000new text end

new text begin791,000new text end

new text beginThis appropriation is for the homeownership education, counseling, and training program under Minnesota Statutes, section 462A.209. Priority may be given to funding programs that are aimed at culturally specific groups who are providing services to members of their communities.new text end

new text beginSubd. 11.new text end

new text beginCapacity Building Grantsnew text end

new text begin375,000new text end

new text begin375,000new text end

new text beginThis appropriation is for nonprofit capacity building grants under Minnesota Statutes, section 462A.21, subdivision 3b.new text end

new text beginSubd. 12.new text end

new text beginGrantsnew text end

new text begin250,000new text end

new text begin250,000new text end

new text begin(a) $250,000 in fiscal year 2016 and $250,000 in fiscal year 2017 are from the general fund to the commissioner of housing finance for the competitive grants program under paragraph (b).new text end

new text begin(b) The commissioner of housing finance shall establish a competitive grant program to serve women and children at risk of being homeless who have been victims of domestic violence, sexual assault, human trafficking, international abusive marriage, or a forced marriage. The commissioner shall award grants to nonprofits that have a plan to partner with an organization that can provide appropriate services. Priority shall be given to programs that can provide linguistically and culturally appropriate services and that have the capacity to serve immigrant women and children. At least one grant must be to a program that serves an area outside of the seven-county metropolitan area. The grant recipients must:new text end

new text begin(1) provide rental assistance to pregnant women or women who have custody over a minor child at risk of being homeless and who are victims of domestic violence, sexual assault, human trafficking, an international abusive marriage, or a forced marriage;new text end

new text begin(2) require the participant to pay 30 percent of the participant's income toward the rent;new text end

new text begin(3) allow the families to choose their own housing, including single-family homes, townhomes, and apartments;new text end

new text begin(4) give priority to families with more than four children and to heads of households who are recent immigrants or refugees and who have limited English proficiency;new text end

new text begin(5) provide rental assistance for up to 24 months;new text end

new text begin(6) provide linguistically and culturally appropriate advocacy and supportive services or partner with a program that can provide appropriate services; andnew text end

new text begin(7) require participants in the program to actively seek employment or participate in activities that will assist them in gaining future employment.new text end

new text begin(c) For the purposes of this subdivision, "supportive services" may include educational, social, legal advocacy, child care, employment assistance, money management, mental health, health care, or other services.new text end

new text begin(d) By July 15, 2015, the remaining balance of appropriations in Laws 2012, First Special Session chapter 1, article 1, section 7, for the economic development and housing challenge program that is unobligated to loans to homeowners or rental property owners as of June 30, 2015, estimated to be $400,000, is canceled to the general fund.new text end

Sec. 5. new text beginEXPLORE MINNESOTA TOURISMnew text end

new text begin$new text end

new text begin14,888,000new text end

new text begin$new text end

new text begin15,888,000new text end

new text begin(a) To develop maximum private sector involvement in tourism, $500,000 in fiscal year 2016 and $500,000 in fiscal year 2017 must be matched by Explore Minnesota Tourism from nonstate sources. Each $1 of state incentive must be matched with $6 of private sector funding. "Cash match" means revenue to the state or documented cash expenditures directly expended to support Explore Minnesota Tourism programs. Up to one-half of the private sector contribution may be in-kind or soft match. The incentive in fiscal year 2016 shall be based on fiscal year 2015 private sector contributions. The incentive in fiscal year 2017 shall be based on fiscal year 2016 private sector contributions. This incentive is ongoing.new text end

new text begin(b) Funding for the marketing grants is available either year of the biennium.new text end

new text begin(c) Of the amount appropriated under this section, $30,000 each year is for Mille Lacs Lake tourism promotion. This is a onetime appropriation.new text end

new text begin(d) Except as provided otherwise, appropriations made under this section are available until expended. Funds unexpended on June 30 of each odd-numbered year must be deposited in a special marketing account for use by Explore Minnesota Tourism for additional marketing activities.new text end

Sec. 6. new text beginDEPARTMENT OF LABOR AND INDUSTRYnew text end

new text beginSubdivision 1.new text end

new text beginTotal Appropriationnew text end

new text begin$new text end

new text begin27,530,000new text end

new text begin$new text end

new text begin29,478,000new text end

new text beginAppropriations by Fundnew text end

new text begin2016new text end

new text begin2017new text end

new text beginGeneralnew text end

new text begin1,630,000new text end

new text begin1,578,000new text end

new text beginWorkers' Compensationnew text end

new text begin24,871,000new text end

new text begin26,871,000new text end

new text beginWorkforce Developmentnew text end

new text begin1,029,000new text end

new text begin1,029,000new text end

new text beginThe amounts that may be spent for each purpose are specified in the following subdivisions.new text end

new text beginSubd. 2.new text end

new text beginWorkers' Compensation new text end

new text begin14,678,000new text end

new text begin16,678,000new text end

new text begin(a) This appropriation is from the workers' compensation fund.new text end

new text begin(b)(1) $4,000,000 in fiscal year 2016 and $6,000,000 in fiscal year 2017 are for workers' compensation system upgrades. The base appropriation for this purpose is $3,000,000 in fiscal year 2018 and $3,000,000 in fiscal year 2019. The base appropriation for fiscal year 2020 and beyond is zero.new text end

new text begin(2) This appropriation includes funds for information technology project services and support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing information technology costs must be incorporated into the service level agreement and must be paid to the Office of MN.IT Services by the commissioner of labor and industry under the rates and mechanism specified in that agreement.new text end

new text beginSubd. 3.new text end

new text beginLabor Standards and Apprenticeshipnew text end

new text begin2,659,000new text end

new text begin2,607,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin1,630,000new text end

new text begin1,578,000new text end

new text beginWorkforce Developmentnew text end

new text begin1,029,000new text end

new text begin1,029,000new text end

new text begin(a) $766,000 each year is from the general fund for the labor standards and apprenticeship program.new text end

new text begin(b) $150,000 each year is from the general fund for a child labor initiative for expanding education and outreach to high schools and targeted industries to ensure minors entering the workforce are safe.new text end

new text begin(c) $879,000 each year is from the workforce development fund for the apprenticeship program under Minnesota Statutes, chapter 178, and includes $100,000 each year for labor education and advancement program grants and to expand and promote registered apprenticeship training in nonconstruction trade programs.new text end

new text begin(d) $150,000 each year is from the workforce development fund for prevailing wage enforcement.new text end

new text begin(e) $100,000 each year is from the general fund for wage enforcement.new text end

new text begin(f) $100,000 each year is from the general fund for compliance and enforcement activities under Laws 2014, chapter 239, article 4, section 10.new text end

new text begin(g) $409,000 in fiscal year 2016 and $399,000 in fiscal year 2017 are from the general fund for the identification of competency standards under Minnesota Statutes, section 175.45.new text end

new text begin(h) $105,000 in fiscal year 2016 and $63,000 in fiscal year 2017 are from the general fund for implementation and administration of legislation styled as H.F. No. 1027 if enacted during the 2015 legislative session.new text end

new text beginSubd. 4.new text end

new text beginWorkplace Safetynew text end

new text begin4,154,000new text end

new text begin4,154,000new text end

new text beginThis appropriation is from the workers' compensation fund.new text end

new text beginSubd. 5.new text end

new text beginGeneral Supportnew text end

new text begin6,039,000new text end

new text begin6,039,000new text end

new text beginThis appropriation is from the workers' compensation fund.new text end

Sec. 7. new text beginBUREAU OF MEDIATION SERVICESnew text end

new text begin$new text end

new text begin1,733,000new text end

new text begin$new text end

new text begin1,733,000new text end

new text begin$68,000 each year is for grants to area labor management committees. Grants may be awarded for a 12-month period beginning July 1 each year. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.new text end

new text beginThis appropriation is from the workers' compensation fund.new text end

Sec. 9. new text beginDEPARTMENT OF COMMERCEnew text end

new text beginSubdivision 1.new text end

new text beginTotal Appropriationnew text end

new text begin$new text end

new text begin67,140,000new text end

new text begin$new text end

new text begin63,066,000new text end

new text beginAppropriations by Fundnew text end

new text begin2016new text end

new text begin2017new text end

new text beginGeneralnew text end

new text begin30,397,000new text end

new text begin25,623,000new text end

new text beginSpecial Revenuenew text end

new text begin34,940,000new text end

new text begin35,640,000new text end

new text beginPetroleum Tanknew text end

new text begin1,052,000new text end

new text begin1,052,000new text end

new text beginWorkers' Compensationnew text end

new text begin751,000new text end

new text begin751,000new text end

new text beginThe amounts that may be spent for each purpose are specified in the following subdivisions.new text end

new text beginSubd. 2.new text end

new text beginFinancial Institutionsnew text end

new text begin4,885,000new text end

new text begin4,885,000new text end

new text begin$142,000 each year is from the general fund for the regulation of mortgage originators and servicers under Minnesota Statutes, chapters 58 and 58A.new text end

new text beginSubd. 3.new text end

new text beginPetroleum Tank Release Compensation Boardnew text end

new text begin1,052,000new text end

new text begin1,052,000new text end

new text beginThis appropriation is from the petroleum tank fund.new text end

new text beginSubd. 4.new text end

new text beginAdministrative Services new text end

new text begin6,040,000 new text end

new text begin5,540,000new text end

new text begin(a) $500,000 in fiscal year 2016 is from the general fund for a grant for a pay-for-performance contract with a vendor who will facilitate the return of abandoned property to owners. The vendor must receive up to seven percent of the value of the abandoned property, up to $500,000, when such abandoned property is returned to its owner. This is a onetime appropriation.new text end

new text begin(b) $100,000 each year is for support of broadband development.new text end

new text beginSubd. 5.new text end

new text beginTelecommunicationsnew text end

new text begin1,873,000new text end

new text begin1,798,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin633,000new text end

new text begin558,000new text end

new text beginSpecial Revenuenew text end

new text begin1,240,000new text end

new text begin1,240,000new text end

new text begin$1,240,000 in fiscal year 2016 and $1,240,000 in fiscal year 2017 are appropriated to the commissioner from the telecommunication access fund for the following transfers:new text end

new text begin(1) $800,000 in fiscal year 2016 and $800,000 in fiscal year 2017 are to the commissioner of human services to supplement the ongoing operational expenses of the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans;new text end

new text begin(2) $290,000 in fiscal year 2016 and $290,000 in fiscal year 2017 are to the chief information officer for the purpose of coordinating technology accessibility and usability;new text end

new text begin(3) $100,000 in fiscal year 2016 and $100,000 in fiscal year 2017 are to the Legislative Coordinating Commission for captioning of legislative coverage. This transfer is subject to Minnesota Statutes, section 16A.281; andnew text end

new text begin(4) $50,000 in fiscal year 2016 and $50,000 in fiscal year 2017 are to the Office of MN.IT Services for a consolidated access fund to provide grants to other state agencies related to accessibility of their Web-based services.new text end

new text beginSubd. 6.new text end

new text beginEnforcementnew text end

new text begin4,340,000new text end

new text begin4,211,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin4,142,000new text end

new text begin4,013,000.new text end

new text beginWorkers' Compensationnew text end

new text begin198,000new text end

new text begin198,000new text end

new text begin$162,000 in fiscal year 2016 and $33,000 in fiscal year 2017 are from the general fund for rulemaking and administration under Minnesota Statutes, section 80A.461.new text end

new text beginSubd. 7.new text end

new text beginEnergy Resourcesnew text end

new text begin40,035,000new text end

new text begin41,665,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin6,335,000new text end

new text begin7,265,000.new text end

new text beginSpecial Revenuenew text end

new text begin33,700,000new text end

new text begin34,400,000new text end

new text begin(a) $22,000,000 in fiscal year 2016 and $23,000,000 in fiscal year 2017 are from the energy fund account established in Minnesota Statutes, section 116C.779, for the payment of energy rebates and incentives to eligible applicants under Minnesota Statutes, sections 116C.779, subdivision 2, 216C.418, and 216C.419, and to reimburse the reasonable costs of the Department of Commerce to administer those programs.new text end

new text begin(b) $400,000 in fiscal year 2016 and $400,000 in fiscal year 2017 are from the energy fund account under Minnesota Statutes, section 116C.779, for a grant to a Minnesota-based nonprofit with demonstrated expertise and capability in energy efficiency, energy technology research, and conservation improvement program delivery to establish and operate an energy technology business accelerator. The grant recipient must match at least $100,000 of the grant amount each year with cash or in-kind contributions. Any balance remaining in fiscal year 2016 does not cancel, but is available in fiscal year 2017.new text end

new text begin(c) The accelerator established using grant funds in paragraph (b) shall identify, research, test, evaluate, and incubate innovative energy technologies, systems, and platforms that may be the basis for new cost-effective programs or to improve existing programs offered by public, municipal, and cooperative utilities subject to Minnesota Statutes, section 216B.241. The grant recipient shall consult with experts from Minnesota utilities, the Department of Commerce, and national energy institutions in the selection of technologies to be evaluated, and, in order to ensure independent evaluation, may not accept funds or other consideration from technology vendors. The technologies to be evaluated may include but are not limited to customer engagement platforms, building and equipment design, data feedback systems, and advanced metering and billing. The focus of the accelerator must be on energy technologies, systems, and platforms developed by Minnesota and regionally based companies, to the extent feasible, that improve the efficiency of customer energy use or utility infrastructure.new text end

new text begin(d) $3,000,000 in fiscal year 2016 and $4,000,000 in fiscal year 2017 are from the general fund for deposit in the energy fund account established in Minnesota Statutes, section 116C.779.new text end

new text begin(e) $5,000,000 in fiscal year 2016 and $5,000,000 in fiscal year 2017 are from the energy fund account established in Minnesota Statutes, section 116C.779, for the payment of rebates to eligible electric vehicle owners under Minnesota Statutes, section 216B.1616.new text end

new text begin(f) $6,000,000 in fiscal year 2016 and $6,000,000 in fiscal year 2017 are from the energy fund account established in Minnesota Statutes, section 116C.779, subdivision 1, for the purpose of awarding propane and compressed natural gas vehicle rebates and to pay the reasonable costs incurred by the commissioner of commerce to administer Minnesota Statutes, section 216C.391.new text end

new text begin(g) $61,000 in fiscal year 2016 is from the general fund for deposit in the energy fund account under Minnesota Statutes, section 116C.779.new text end

new text beginSubd. 8.new text end

new text beginInsurancenew text end

new text begin3,915,000new text end

new text begin3,915,000new text end

new text beginAppropriations by Fundnew text end

new text beginGeneralnew text end

new text begin3,362,000new text end

new text begin3,362,000new text end

new text beginWorkers' Compensationnew text end

new text begin553,000new text end

new text begin553,000new text end

new text beginSubd. 9.new text end

new text beginTransfersnew text end

new text begin(a) Notwithstanding Minnesota Statutes, section 216C.416, of the amounts transferred to the solar thermal system rebate account in the special revenue fund in the state treasury in calendar years 2014 and 2015, $300,000 shall be transferred on July 1, 2015, to the energy fund account established under Minnesota Statutes, section 116C.779, and are appropriated to the commissioner of commerce for the purpose of providing energy conservation and weatherization programs to low-income persons who use propane as a heating fuel. The commissioner of commerce shall disburse the funds transferred in this section in a manner consistent with the requirements of the federal Low-Income Home Energy Assistance Program under United States Code, title 42, sections 8621 to 8630. This is a onetime transfer.new text end

new text begin(b) The remaining balance of the appropriation in Laws 2013, chapter 85, article 1, section 13, subdivision 7, for grants to install renewable energy equipment in households under Minnesota Statutes 2013, section 239.101, that is unobligated and unexpended, and is estimated to be $61,000, is canceled to the general fund on June 30, 2015. This paragraph is effective the day following final enactment. new text end

new text beginSubd. 10.new text end

new text beginPropane Prepurchasenew text end

new text begin5,000,000new text end

new text begin0new text end

new text begin(a) $5,000,000 in fiscal year 2015 and $5,000,000 in fiscal year 2016 are appropriated from the general fund for the purpose of prepurchasing propane under Minnesota Statutes, section 216B.0951. Notwithstanding Minnesota Statutes, section 216B.0951, subdivision 1, the commissioner must expend all of the funds before September 1 each year. Propane may not be distributed to customers before October 1 each year.new text end

new text begin(b) The commissioner shall reserve $5,000,000 each year from the federal funds transferred to the state for use in the 2015-2016 and 2016-2017 heating seasons under the Low-Income Home Energy Assistance Program and transfer those amounts to the general fund.new text end

Sec. 10. new text beginPUBLIC UTILITIES COMMISSIONnew text end

new text begin$new text end

new text begin5,553,000new text end

new text begin$new text end

new text begin5,441,000new text end

Sec. 11. new text beginPOLLUTION CONTROL AGENCYnew text end

new text begin$new text end

new text begin466,000new text end

new text begin$new text end

new text begin470,000new text end

new text begin$466,000 in fiscal year 2016 and $470,000 in fiscal year 2017 are from the energy fund account established in Minnesota Statutes, section 116C.779, subdivision 1, for the purposes of completing the plan required under Minnesota Statutes, section 216H.077. This is a onetime appropriation.new text end

Sec. 12. new text beginDEPARTMENT OF ADMINISTRATIONnew text end

new text begin$new text end

new text begin92,000new text end

new text begin$new text end

new text begin0new text end

new text begin$92,000 in fiscal year 2016 is appropriated from the energy fund account established in Minnesota Statutes, section 116C.779, for the purpose of completing the transfer of functions study under article 11.new text end

ARTICLE 2

JOBS AND ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2014, section 116J.394, is amended to read:

116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to 116J.396, the following terms have the meanings given them.

(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, subdivision 1, paragraph (b).

(d) "Commissioner" means the commissioner of employment and economic development.

(e) "Last-mile infrastructure" means broadband infrastructure that serves as the final leg connecting the broadband service provider's network to the end-use customer's on-premises telecommunications equipment.

(g) "Political subdivision" means any county, city, town, school district, special district or other political subdivision, or public corporation.

(h) "Underserved areas" means areas of Minnesota in which households or businesses lack access to wire-line broadband service at speeds that meet the state broadband goals of ten to 20 megabits per second download and five to ten megabits per second upload.

(i) "Unserved areas" means areas of Minnesota in which households or businesses lack access to wire-line broadband service deleted text beginat speeds that meet a Federal Communications Commission threshold of four megabits per second download and one megabit per second uploaddeleted text endnew text begin, as defined in section 116J.39new text end.

Sec. 2.

Subdivision 1.

Grant program established; purpose.

(a) The commissioner shall make grants to counties or cities to provide deleted text beginup todeleted text end 50 percent of the capital costs of public infrastructure necessary for an eligible economic development projectnew text begin, unless the applicant requests a lesser amountnew text end. The county or city receiving a grant must provide for the remainder of the costs of the project, either in cash or in kind. In-kind contributions may include the value of site preparation other than the public infrastructure needed for the project.

(b) The purpose of the grants made under this section is to keep or enhance jobs in the area, increase the tax base, or to expand or create new economic development.

Sec. 3.

Subd. 6.

Maximum grant amount.

A county or city may receive no more than deleted text begin$1,000,000deleted text endnew text begin $2,000,000new text end in two years for one or more projects.

Sec. 4.

new text begin[116J.549] WORKFORCE HOUSING DEVELOPMENT PROGRAM.new text end

new text beginSubdivision 1.new text end

new text beginEstablishment.new text end

new text beginThe commissioner of employment and economic development shall establish a workforce housing development program to award grants to eligible project areas to be used for qualified expenditures.new text end

new text beginSubd. 2.new text end

new text beginDefinitions.new text end

new text begin(a) For purposes of this section, the following terms have the meanings given.new text end

new text begin(b) "Eligible project area" means a home rule charter or statutory city with a population exceeding 500; a community that has a combined population of 1,500 residents located within 15 miles of a home rule charter or statutory city; or an area served by a joint county-city economic development authority.new text end

new text begin(c) "Joint county-city economic development authority" means an economic development authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between a city and county and excluding those established by the county only.new text end

new text begin(d) "Market rate residential rental properties" means properties that are rented at market value, including new modular homes, new manufactured homes, and new manufactured homes on leased land or in a manufactured home park, and excludes:new text end

new text begin(1) properties constructed with financial assistance requiring the property to be occupied by residents that meet income limits under federal or state law of initial occupancy; andnew text end

new text begin(2) properties constructed with federal, state, or local flood recovery assistance, regardless of whether that assistance imposed income limits as a condition of receiving assistance.new text end

new text beginSubd. 3.new text end

new text beginApplication.new text end

new text beginThe commissioner shall develop forms and procedures to solicit and review applications for grants under this section. An eligible project area must include in its application information sufficient to verify that it meets the program requirements under this section and any additional evidence of the scarcity of workforce housing in the area that it considers appropriate or that the commissioner requires.new text end

new text beginSubd. 4.new text end

new text beginProgram requirements.new text end

new text begin(a) The commissioner must not award a grant to an eligible project area under this section until the following determinations are made:new text end

new text begin(1) the average vacancy rate for rental housing located in the eligible project area, and in any other city located within 15 miles or less of the boundaries of the area, has been five percent or less for at least the prior two-year period;new text end

new text begin(2) one or more businesses located in the eligible project area, or within 25 miles of the area, that employs a minimum of 20 full-time equivalent employees in aggregate have provided a written statement to the eligible project area indicating that the lack of available rental housing has impeded their ability to recruit and hire employees;new text end

new text begin(3) fewer than ten market rate residential rental units per 1,000 residents were constructed in the city in each of the last ten years; andnew text end

new text begin(4) the eligible project area has certified that the grants will be used for qualified expenditures for the development of rental housing to serve employees of businesses located in the eligible project area or surrounding area.new text end

new text begin(b) Preference for grants awarded under this section shall be given to eligible project areas with less than 18,000 people.new text end

new text beginSubd. 5.new text end

new text beginAllocation.new text end

new text beginThe amount of a grant under this section must not exceed the lesser of 25 percent of the qualified expenditures for the project or $1,000,000.new text end

new text beginSubd. 6.new text end

new text beginReport.new text end

new text beginBy January 15 of the year following the year in which the grant was issued, each eligible project area receiving a grant under this section must submit a report specifying the projects that received grants under this section and the specific purposes for which the grant funds were used to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over jobs and workforce development.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective July 1, 2015.new text end

Sec. 5.

Subd. 3.

Certification of qualified business.

(a) A business may apply to the commissioner for certification as a qualified business under this section. The commissioner shall specify the form of the application, the manner and times for applying, and the information required to be included in the application. The commissioner may impose an application fee in an amount sufficient to defray the commissioner's cost of processing certifications. new text beginApplication fees are deposited in the greater Minnesota business expansion administration account in the special revenue fund. new text endA business must file a copy of its application with the chief clerical officer of the city at the same time it applies to the commissioner. For an agricultural processing facility located outside the boundaries of a city, the business must file a copy of the application with the county auditor.

(b) The commissioner shall certify each business as a qualified business that:

(1) satisfies the requirements of subdivision 2;

(2) the commissioner determines would not expand its operations in greater Minnesota without the tax incentives available under subdivision 4; and

(3) enters a business subsidy agreement with the commissioner that pledges to satisfy the minimum expansion requirements of paragraph (c) within three years or less following execution of the agreement.

The commissioner must act on an application within 90 days after its filing. Failure by the commissioner to take action within the 90-day period is deemed approval of the application.

(c) The business must increase the number of full-time equivalent employees in greater Minnesota from the time the business subsidy agreement is executed by two employees or ten percent, whichever is greater.

(d) The city, or a county for an agricultural processing facility located outside the boundaries of a city, in which the business proposes to expand its operations may file comments supporting or opposing the application with the commissioner. The comments must be filed within 30 days after receipt by the city of the application and may include a notice of any contribution the city or county intends to make to encourage or support the business expansion, such as the use of tax increment financing, property tax abatement, additional city or county services, or other financial assistance.

(e) Certification of a qualified business is effective for the seven-year period beginning on the first day of the calendar month immediately following the date that the commissioner informs the business of the award of the benefit.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective retroactively from August 1, 2014.new text end

Sec. 6.

Minnesota Statutes 2014, section 116J.8738, is amended by adding a subdivision to read:

new text beginSubd. 6.new text end

new text beginFunds.new text end

new text beginAmounts in the greater Minnesota business expansion administration account in the special revenue fund are appropriated to the commissioner of employment and economic development for costs associated with processing applications under subdivisions 3, 4, and 5, and for personnel and administrative expenses related to administering the greater Minnesota business expansion program.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective retroactively from August 1, 2014.new text end

Sec. 7.

Subdivision 1.

Grant allowed.

The commissioner may provide a grant to a qualified job training program from money appropriated for the purposes of this section as follows:

(1) a deleted text begin$9,000deleted text endnew text begin$11,000 new text endplacement grant paid to a job training program upon placement in employment of a qualified graduate of the program; and

(2) a deleted text begin$9,000deleted text endnew text begin$11,000 new text endretention grant paid to a job training program upon retention in employment of a qualified graduate of the program for at least one year.

(4) the program deleted text beginmustdeleted text endnew text beginmay new text endprovide income supplements, when needed, to participants for housing, counseling, tuition, and other basic needs;

(5) the program's education and training course must last for an average of at least six months;

(6) individuals served by the program must:

(i) be 18 years of age or older;

(ii) have federal adjusted gross income of no more than deleted text begin$11,000deleted text endnew text begin$12,000 new text endper year in the calendar year immediately before entering the program;

(iii) have assets of no more than deleted text begin$7,000deleted text endnew text begin $10,000new text end, excluding the value of a homestead; and

(iv) not have been claimed as a dependent on the federal tax return of another person in the previous taxable year; and

(7) the program must be certified by the commissioner of employment and economic development as meeting the requirements of this subdivision.

Sec. 9.

Subd. 4.

Use of funds.

Funds granted by the board under this section may be used for any combination of the following, except as otherwise provided in this section:

(1) employment transition services such as developing readjustment plans for individuals; outreach and intake; early readjustment; job or career counseling; testing; orientation; assessment of skills and aptitudes; provision of occupational and labor market information; job placement assistance; job search; job development; prelayoff assistance; relocation assistance; programs provided in cooperation with employers or labor organizations to provide early intervention in the event of plant closings or substantial layoffs; and entrepreneurial training and business consulting;

(2) support services, including assistance to help the participant relocate to employ existing skills; out-of-area job search assistance; family care assistance, including child care; commuting assistance; emergency housing and rental assistance; counseling assistance, including personal and financial; health care; emergency health assistance; emergency financial assistance; work-related tools and clothing; and other appropriate support services that enable a person to participate in an employment and training program with the goal of reemployment;

(3) specific, short-term training to help the participant enhance current skills in a similar occupation or industry; entrepreneurial training, customized training, or on-the-job training; basic and remedial education to enhance current skills; and literacy and work-related English training for non-English speakers; deleted text beginanddeleted text end

(4) long-term training in a new occupation or industry, including occupational skills training or customized training in an accredited program recognized by one or more relevant industries. Long-term training shall only be provided to dislocated workers whose skills are obsolete and who have no other transferable skills likely to result in employment at a comparable wage rate. Training shall only be provided for occupations or industries with reasonable expectations of job availability based on the service provider's thorough assessment of local labor market information where the individual currently resides or is willing to relocate. This clause shall not restrict training in personal services or other such industriesnew text begin; andnew text end

new text begin(5) incumbent worker trainingnew text end.

Sec. 10.

Subdivision 1.

Determination and collection of special assessment.

(a) In addition to amounts due from an employer under the Minnesota unemployment insurance program, each employer, except an employer making reimbursements is liable for a special assessment levied at the rate of deleted text begin.10deleted text endnew text begin .08new text end percent per year on all taxable wages, as defined in section 268.035, subdivision 24deleted text begin, except that effective July 1, 2009, until June 30, 2011, the special assessment shall be levied at a rate of .12 percent per year on all taxable wages as defined in section 268.035, subdivision 24deleted text end. The assessment shall become due and be paid by each employer on the same schedule and in the same manner as other amounts due from an employer under section 268.051, subdivision 1.

(b) The special assessment levied under this section shall be subject to the same requirements and collection procedures as any amounts due from an employer under the Minnesota unemployment insurance program.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective July 1, 2017.new text end

Sec. 11.

new text begin[116L.31] DUAL TRAINING COMPETENCY GRANTS.new text end

new text beginSubdivision 1.new text end

new text beginProgram created.new text end

new text beginThe commissioner of employment and economic development shall make grants for the training of employees to achieve the competency standard for an occupation identified by the commissioner of labor and industry under section 175.45 and Laws 2014, chapter 312, article 3, section 21. "Competency standard" has the meaning given in section 175.45, subdivision 2.new text end

new text beginSubd. 2.new text end

new text beginEligible grantees.new text end

new text beginAn employer or an organization representing the employer is eligible to apply for a grant to train employees if the employer has employees who are in, or are to be trained to be in, an occupation for which a competency standard has been identified and the employee has not attained the competency standard prior to the commencement of the planned training. Training need not address all aspects of a competency standard but may address only the competencies of a standard that an employee is lacking. Employees who have previously received a grant under this program are not eligible to receive another grant. Each employee must apply for federal Pell and state grants as a condition of participating in the program.new text end

new text beginSubd. 3.new text end

new text beginTraining institution.new text end

new text begin(a) Prior to applying for a grant, an employer or an organization representing the employer must enter into an agreement with a state college or university operated by the Board of Trustees of the Minnesota State Colleges and Universities to provide the employee competency standard training.new text end

new text begin(b) For the purposes of this section, "training institution" means an institution operated by the Board of Trustees of the Minnesota State Colleges and Universities or an institution designated by the chancellor of the Minnesota State Colleges and Universities.new text end

new text beginSubd. 4.new text end

new text beginContract required.new text end

new text beginPrior to the start of a training program, an employer and employee must enter into a contract detailing the terms of the work relationship during and after the training program.new text end

new text beginSubd. 5.new text end

new text beginApplication.new text end

new text beginApplications must be made to the commissioner on a form provided by the commissioner. The commissioner must, to the extent possible, make the application form short and simple to complete. The commissioner shall establish a schedule for applications and grants. The application must include, without limitation:new text end

new text begin(1) the projected number of employee trainees;new text end

new text begin(2) the competency standard for which training will be provided;new text end

new text begin(3) any credential the employee will receive upon completion of training;new text end

new text begin(4) the name and address of the training institution and a signed statement by the institution that it is able to and agrees to provide the training;new text end

new text begin(5) the period of the training; andnew text end

new text begin(6) the cost of the training charged by the training institution and certified by the institution.new text end

new text beginAn application may be made for training of employees of multiple employers either by the employers or by an organization on their behalf.new text end

new text beginSubd. 6.new text end

new text beginGrant criteria.new text end

new text beginTo the extent there are sufficient applications, the commissioner shall award at least an equal dollar amount of grants for training for employees whose work site is projected to be outside the metropolitan area as defined in section 473.121, subdivision 2, as for employees whose work site is projected to be within the metropolitan area. In determining the award of grants, the commissioner must consider, among other factors:new text end

new text begin(1) the aggregate state and regional need for employees with the competency to be trained;new text end

new text begin(2) the competency standards developed by the commissioner of labor and industry as part of the Minnesota PIPELINE Project;new text end

new text begin(3) the per employee cost of training;new text end

new text begin(4) the additional employment opportunities for employees as a result of the training;new text end

new text begin(5) projected increases in compensation for employees receiving the training; andnew text end

new text begin(6) the amount of employer training cost match, on both a per employee and aggregate basis.new text end

new text beginSubd. 7.new text end

new text beginEmployer match.new text end

new text begin(a) Employers must pay to the training institution a percentage of a training institution's charge for the training after subtracting federal Pell and state grants for which an employee is eligible. The amount that an employer must pay to the training institution shall be determined as follows:new text end

new text begin(1) an employer with greater than or equal to $50,000,000 in annual revenue in the previous calendar year must pay at least 66 percent of the training institution's charge for the training;new text end

new text begin(2) an employer with less than $50,000,000 in annual revenue in the previous calendar year but greater than or equal to $20,000,000 in annual revenue in the previous calendar year must pay at least 50 percent of the training institution's charge for the training;new text end

new text begin(3) an employer with less than $20,000,000 in annual revenue in the previous calendar year but greater than or equal to $10,000,000 in annual revenue in the previous calendar year must pay at least 33 percent of the training institution's charge for the training; andnew text end

new text begin(4) an employer with less than $10,000,000 in annual revenue in the previous calendar year must pay at least 20 percent of the training institution's charge for the training.new text end

new text begin(b) The match required under this subdivision shall be based solely on the annual revenue of the individual employer without regard to any organization representing the employer.new text end

new text beginSubd. 8.new text end

new text beginPayment of grant.new text end

new text beginThe commissioner shall make grant payments to the training institution in a manner determined by the commissioner after receiving notice from the institution that the employer has paid the employer match.new text end

new text beginSubd. 9.new text end

new text beginGrant amounts.new text end

new text begin(a) The commissioner shall determine a maximum amount that may be awarded in a single grant, and a maximum amount that may be awarded per employee trained under a grant. The commissioner shall set the maximum grant amount at a level that ensures sufficient funding will be available for multiple employers. The maximum grant amount per employee trained may not exceed the cost of tuition up to 60 credits.new text end

new text begin(b) A grant for a particular employee must be reduced by the amounts of any federal Pell grant or state grant the employee is eligible to receive for the training and the amount of the employer match.new text end

new text beginSubd. 10.new text end

new text beginReporting.new text end

new text beginCommencing in 2017, the commissioner shall annually by February 1 report on the activity of the grant program for the preceding fiscal year to the chairs of the legislative committees with jurisdiction over workforce policy and finance. At a minimum, the report must include:new text end

new text begin(1) research and analysis on the costs and benefits of the grants for employees and employers;new text end

new text begin(2) the number of employees who commenced training and the number who completed training; andnew text end

new text begin(3) recommendations, if any, for changes to the program.new text end

Sec. 12.

new text begin[116L.40] DEFINITIONS.new text end

new text beginSubdivision 1.new text end

new text beginScope.new text end

new text beginWhen used in sections 116L.40 to 116L.42, the following terms have the meanings given them unless the context requires otherwise.new text end

new text beginSubd. 2.new text end

new text beginAgreement.new text end

new text begin"Agreement" means the agreement between an employer and the commissioner for a project.new text end

new text beginSubd. 3.new text end

new text beginCommissioner.new text end

new text begin"Commissioner" means the commissioner of employment and economic development.new text end

new text beginSubd. 4.new text end

new text beginDisability.new text end

new text begin"Disability" has the meaning given under United States Code, title 42, chapter 126.new text end

new text beginSubd. 5.new text end

new text beginEmployee.new text end

new text begin"Employee" means the individual employed in a new job.new text end

new text beginSubd. 6.new text end

new text beginEmployer.new text end

new text begin"Employer" means the individual, corporation, partnership, limited liability company, or association providing new jobs and entering into an agreement.new text end

new text beginSubd. 7.new text end

new text beginNew job.new text end

new text begin"New job" means a job:new text end

new text begin(1) that is provided by a new or expanding business at a location in Minnesota outside of the metropolitan area, as defined in section 473.121, subdivision 2;new text end

new text begin(2) that provides at least 32 hours of work per week for a minimum of nine months per year and is permanent with no planned termination date;new text end

new text begin(3) that is certified by the commissioner as qualifying under the program before the first employee is hired to fill the job; andnew text end

new text begin(4) for which an employee hired was not (i) formerly employed by the employer in the state, or (ii) a replacement worker, including a worker newly hired as a result of a labor dispute.new text end

new text beginSubd. 8.new text end

new text beginProgram.new text end

new text begin"Program" means the project or projects established under sections 116L.40 to 116L.42.new text end

new text beginSubd. 9.new text end

new text beginProgram costs.new text end

new text begin"Program costs" means all necessary and incidental costs of providing program services, except that program costs are increased by $1,000 per employee for an individual with a disability. The term does not include the cost of purchasing equipment to be owned or used by the training or educational institution or service.new text end

new text beginSubd. 10.new text end

new text beginProgram services.new text end

new text begin"Program services" means training and education specifically directed to new jobs that are determined to be appropriate by the commissioner, including in-house training; services provided by institutions of higher education and federal, state, or local agencies; or private training or educational services. Administrative services and assessment and testing costs are included.new text end

new text beginSubd. 11.new text end

new text beginProject.new text end

new text begin"Project" means a training arrangement that is the subject of an agreement entered into between the commissioner and an employer to provide program services.new text end

Sec. 13.

new text begin[116L.41] COMMISSIONER'S DUTIES AND POWERS; AGREEMENTS.new text end

new text beginSubdivision 1.new text end

new text beginService provision.new text end

new text beginUpon request, the commissioner shall provide or coordinate the provision of program services under sections 116L.40 to 116L.42 to a business eligible for grants under section 116L.42. The commissioner shall specify the form of and required information to be provided with applications for projects to be funded with grants under section 116L.42.new text end

new text beginSubd. 2.new text end

new text beginAgreements; required terms.new text end

new text begin(a) The commissioner may enter into an agreement to establish a project with an employer that:new text end

new text begin(1) identifies program costs to be paid from sources under the program;new text end

new text begin(2) identifies program costs to be paid by the employer;new text end

new text begin(3) provides that on-the-job training costs for employees may not exceed 50 percent of the annual gross wages and salaries of the new jobs in the first full year after execution of the agreement up to a maximum of $10,000 per eligible employee;new text end

new text begin(4) provides that each employee must be paid wages at least equal to the median hourly wage for the county in which the job is located, as reported in the most recently available data from the United States Bureau of the Census, plus benefits, by the earlier of the end of the training period or 18 months of employment under the project; andnew text end

new text begin(5) provides that job training will be provided and the length of time of training.new text end

new text begin(b) Before entering into a final agreement, the commissioner shall:new text end

new text begin(1) determine that sufficient funds for the project are available under section 116L.42; andnew text end

new text begin(2) investigate the applicability of other training programs and determine whether the job skills partnership grant program is a more suitable source of funding for the training and whether the training can be completed in a timely manner that meets the needs of the business.new text end

new text beginThe investigation under clause (2) must be completed within 15 days or as soon as reasonably possible after the employer has provided the commissioner with all the requested information.new text end

new text beginSubd. 3.new text end

new text beginGrant funds sufficient.new text end

new text beginThe commissioner must not enter into an agreement under subdivision 2 unless the commissioner determines that sufficient funds are available. new text end

new text beginSubd. 4.new text end

new text beginAllocation.new text end

new text beginThe commissioner shall allocate grant funds under section 116L.42 to project applications based on a first-come, first-served basis, determined on the basis of the commissioner's receipt of a complete application for the project, including the provision of all of the required information. The agreement must specify the amount of grant funds available to the employer for each year covered by the agreement.new text end

new text beginSubd. 5.new text end

new text beginApplication fee.new text end

new text beginThe commissioner may charge each employer an application fee to cover part or all of the administrative and legal costs incurred, not to exceed $500 per employer. The fee is deemed approved under section 16A.1283. The fee is deposited in the jobs training account in the special revenue fund and amounts in the account are appropriated to the commissioner for the costs of administering the program. The commissioner shall refund the fee to the employer if the application is denied because program funding is unavailable.new text end

Sec. 14.

new text begin[116L.42] JOBS TRAINING GRANTS.new text end

new text beginSubdivision 1.new text end

new text beginRecovery of program costs.new text end

new text beginAmounts paid by employers for program costs are repaid by a job training grant equal to the lesser of the following:new text end

new text begin(1) the amount of program costs specified in the agreement for the project; ornew text end

new text begin(2) the amount of program costs paid by the employer for new employees under a project.new text end

new text beginSubd. 2.new text end

new text beginReports.new text end

new text begin(a) By February 1, 2018, the commissioner shall report to the governor and the legislature on the program. The report must include at least:new text end

new text begin(1) the amount of grants issued under the program;new text end

new text begin(2) the number of individuals receiving training under the program, including the number of new hires who are individuals with disabilities;new text end

new text begin(3) the number of new hires attributable to the program, including the number of new hires who are individuals with disabilities;new text end

new text begin(4) an analysis of the effectiveness of the grant in encouraging employment; andnew text end

new text begin(5) any other information the commissioner determines appropriate.new text end

new text begin(b) The report to the legislature must be distributed as provided in section 3.195.new text end

Sec. 15.

new text beginSubdivision 1.new text end

new text beginProgram.new text end

new text beginThe commissioner of employment and economic development, in consultation with the commissioner of labor and industry, shall collaborate with Minnesota State Colleges and Universities (MnSCU) institutions and employers to develop and administer a customized training program for skilled manufacturing industries that integrates academic instruction and job-related learning in the workplace and MnSCU institutions. The commissioner shall actively recruit participants in a customized training program for skilled manufacturing industries from the following groups: secondary and postsecondary school systems, individuals with disabilities, dislocated workers, retired and disabled veterans, individuals enrolled in MFIP under chapter 256J, minorities, previously incarcerated individuals, individuals residing in labor surplus areas as defined by the United States Department of Labor, and any other disadvantaged group as determined by the commissioner.new text end

new text beginSubd. 2.new text end

new text beginDefinitions.new text end

new text begin(a) For the purposes of this section, the terms defined in this subdivision have the meanings given them.new text end

new text begin(b) "Commissioner" means the commissioner of employment and economic development.new text end

new text begin(c) "Employer" means an employer in Minnesota in the skilled manufacturing industry who employs no more than 50 employees and who enters into the agreements with MnSCU institutions and the commissioner under subdivisions 3 to 5.new text end

new text begin(d) "MnSCU institution" means an institution designated by the commissioner unless otherwise specified by the legislature.new text end

new text begin(e) "Participant" means an employee who enters into a customized training program for skilled manufacturing industries participation agreement under subdivision 4.new text end

new text begin(f) "Related instruction" means classroom instruction or technical or vocational training required to perform the duties of the skilled manufacturing job.new text end

new text begin(g) "Skilled manufacturing" means occupations in manufacturing industry sectors 31 to 33 as defined by the North American Industry Classification System (NAICS).new text end

new text beginSubd. 3.new text end

new text begin(a) The commissioner, employer, and MnSCU institution shall enter into a skilled manufacturing customized training program employer agreement that is specific to the identified skilled manufacturing training needs of an employer.new text end

new text begin(b) The agreement must contain the following:new text end

new text begin(1) the name of the employer;new text end

new text begin(2) a statement showing the number of hours to be spent by a participant in work and the number of hours to be spent, if any, in concurrent, supplementary instruction in related subjects. The maximum number of hours of work per week, not including time spent in related instruction, for any participant shall not exceed either the number prescribed by law or the customary regular number of hours per week for the employees of the employer. A participant may be allowed to work overtime provided that the overtime work does not conflict with supplementary instruction course attendance. All time spent by the participant in excess of the number of hours of work per week as specified in the skilled manufacturing customized training program participation agreement shall be considered overtime;new text end

new text begin(3) the hourly wage to be paid to the participant and requirements for reporting to the commissioner on actual wages paid to the participant;new text end

new text begin(4) an explanation of how the employer agreement or participant agreement may be terminated;new text end

new text begin(5) a statement setting forth a schedule of the processes of the occupation in which the participant is to be trained and the approximate time to be spent at each process;new text end

new text begin(6) a statement by the MnSCU institution and the employer describing the related instruction that will be offered, if any, under subdivision 5, paragraph (c); andnew text end

new text begin(7) any other provision the commissioner deems necessary to carry out the purposes of this section.new text end

new text begin(c) The commissioner may periodically review the adherence to the terms of the customized training program employer agreement. If the commissioner determines that an employer or employee has failed to comply with the terms of the agreement, the commissioner shall terminate the agreement. An employer must report to the commissioner any change in status for the participant within 30 days of the change in status.new text end

new text beginSubd. 4.new text end

new text begin(a) The commissioner, the prospective participant, and the employer shall enter into a skilled manufacturing customized training program participation agreement that is specific to the training to be provided to the participant.new text end

new text begin(b) The participation agreement must contain the following:new text end

new text begin(1) the name of the employer;new text end

new text begin(2) the name of the participant;new text end

new text begin(3) a statement setting forth a schedule of the processes of the occupation in which the participant is to be trained and the approximate time to be spent at each process;new text end

new text begin(4) a description of any related instruction;new text end

new text begin(5) a statement showing the number of hours to be spent by a participant in work and the number of hours to be spent, if any, in concurrent, supplementary instruction in related subjects. The maximum number of hours of work per week, not including time spent in related instruction, for any participant shall not exceed either the number prescribed by law or the customary regular number of hours per week for the employees of the employer. A participant may be allowed to work overtime provided that the overtime work does not conflict with supplementary instruction course attendance. All time spent by the participant in excess of the number of hours of work per week as specified in the customized training program participation agreement shall be considered overtime;new text end

new text begin(6) the hourly wage to be paid to the participant; andnew text end

new text begin(7) an explanation of how the parties may terminate the participation agreement.new text end

new text begin(c) The commissioner may periodically review the adherence to the terms of the customized training program participation agreement. If the commissioner determines that an employer or participant has failed to comply with the terms of the agreement, the commissioner shall terminate the agreement. An employer must report to the commissioner any change in status for the participant within 30 days of the change in status.new text end

new text beginSubd. 5.new text end

new text beginMnSCU instruction.new text end

new text begin(a) The MnSCU institution shall collaborate with an employer to provide related instruction that the employer deems necessary to instruct participants of a skilled manufacturing customized training program. The related instruction provided must be, for the purposes of this section, career-level, as negotiated by the commissioner and the MnSCU institution. The related instruction may be for credit or noncredit, and credit earned may be transferable to a degree program, as determined by the MnSCU institution. The MnSCU institution shall provide a summary of the related instruction to the commissioner prior to disbursement of any funds.new text end

new text begin(b) The commissioner, in conjunction with the MnSCU institution, shall issue a certificate of completion to a participant who completes all required components of the skilled manufacturing customized training program participation agreement.new text end

new text begin(c) As part of the skilled manufacturing customized training program, an employer shall collaborate with the MnSCU institution for any related instruction required to perform the skilled manufacturing job. The agreement shall include:new text end

new text begin(1) a detailed explanation of the related instruction; andnew text end

new text begin(2) the number of hours of related instruction needed to receive a certificate of completion.new text end

new text begin(d) The commissioner shall follow the requirements of section 116L.98 regardless of the funding source. The MnSCU institution shall provide the commissioner with the data needed for the commissioner to fulfill the requirements of section 116L.98.new text end

Sec. 16.

Subdivision 1.

Requirements.

The commissioner shall develop and implement a uniform outcome measurement and reporting system for adult workforce-related programs funded in whole or in part by deleted text beginthe workforce development fund.deleted text endnew text begin state funds. For the purpose of this section, "workforce-related programs" means all education and training programs administered by the commissioner and includes programs and services administered by the commissioner and provided to individuals enrolled in adult basic education under section 124D.52, and the Minnesota family investment program under chapter 256J.new text end

Sec. 17.

Subd. 3.

Uniform outcome report card; reporting by commissioner.

(a) By December 31 of each even-numbered year, the commissioner must report to the chairs and ranking minority members of the committees of the house of representatives and the senate having jurisdiction over economic development and workforce policy and finance the following information separately for each of the previous two fiscal or calendar years, for each program subject to the requirements of subdivision 1:

(1) the total number of participants enrolled;

(2) the median pre-enrollment wages based on participant wages for the second through the fifth calendar quarters immediately preceding the quarter of enrollment excluding those with zero income;

(3) the total number of participants with zero income in the second through fifth calendar quarters immediately preceding the quarter of enrollment;

(4) the total number of participants enrolled in training;

(5) the total number of participants enrolled in training by occupational group;

(6) the total number of participants that exited the program and the average enrollment duration of participants that have exited the program during the year;

(7) the total number of exited participants who completed training;

(8) the total number of exited participants who attained a credential;

(9) the total number of participants employed during three consecutive quarters immediately following the quarter of exit, by industry;

(10) the median wages of participants employed during three consecutive quarters immediately following the quarter of exit;

(11) the total number of participants employed during eight consecutive quarters immediately following the quarter of exit, by industry; deleted text beginanddeleted text end

new text begin(14) the total cost of the program per participant;new text end

new text begin(15) the cost per credential received by a participant; andnew text end

new text begin(16) the administrative cost of the program.new text end

(b) The report to the legislature must contain participant information by education level, race and ethnicity, gender, and geography, and a comparison of exited participants who completed training and those who did not.

(c) The requirements of this section apply to programs administered directly by the commissioner or administered by other organizations under a grant made by the department.

Sec. 18.

Subd. 5.

Information.

new text begin(a) new text endThe information collected and reported under subdivisions 3 and 4 shall be made available on the department's Web site.

new text begin(b) The commissioner must provide analysis of the data required under subdivision 3.new text end

new text begin(c) The analysis under paragraph (b) must also include an executive summary of program outcomes, including but not limited to enrollment, training, credentials, pre- and post-program employment and wages, and a comparison of program outcomes by participant characteristics.new text end

new text begin(d) The data required in the comparative analysis under paragraph (c) must be presented in both written and graphic format.new text end

Sec. 19.

Subd. 7.

Workforce program net impact analysis.

(a) By January 15, 2015, the commissioner must report to the committees of the house of representatives and the senate having jurisdiction over economic development and workforce policy and finance on the results of the net impact pilot project already underway as of the date of enactment of this section.

(b) The commissioner shall contract with an independent entity to conduct an ongoing net impact analysis of the programs included in the net impact pilot project under paragraph (a)new text begin, career pathways programs,new text end and any other programs deemed appropriate by the commissioner. The net impact methodology used by the independent entity under this paragraph must be based on the methodology and evaluation design used in the net impact pilot project under paragraph (a).

(c) By January 15, 2017, and every four years thereafter, the commissioner must report to the committees of the house of representatives and the senate having jurisdiction over economic development and workforce policy and finance the following information for each program subject to paragraph (b):

(1) the net impact of workforce services on individual employment, earnings, and public benefit usage outcomes; and

(2) a cost-benefit analysis for understanding the monetary impacts of workforce services from the participant and taxpayer points of view.

The report under this paragraph must be made available to the public in an electronic format on the Department of Employment and Economic Development's Web site.

(d) The department is authorized to create and maintain data-sharing agreements with other departments, including corrections, human services, and any other department that are necessary to complete the analysis. The department shall supply the information collected for use by the independent entity conducting net impact analysis pursuant to the data practices requirements under chapters 13, 13A, 13B, and 13C.

Sec. 20.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text beginSubd. 6.new text end

new text beginLow-income person.new text end

new text begin"Low-income person" means a person who has an annual income, adjusted for family size, of not more than 80 percent of the area median family income for the seven-county metropolitan area.new text end

Sec. 21.

Subdivision 1.

Eligibility rules.

The board shall make urban challenge grants deleted text beginfor use in low-income areasdeleted text endnew text begin for use in the seven-county metropolitan areanew text end to nonprofit corporations to encourage private investment, to provide jobs for minority persons and others in low-income areas, to create and strengthen minoritynew text begin and low-income persons' new text endbusiness enterprises, and to promote economic development in a low-income area. The board shall adopt rules to establish criteria for determining loan eligibility.

Sec. 22.

Subd. 2.

Challenge grant eligibility; nonprofit corporation.

The board may enter into agreements with nonprofit corporations to fund and guarantee loans the nonprofit corporation makes in low-income areas under subdivision 4new text begin and to low-income personsnew text end. A corporation must demonstrate that:

(1) its board of directors includes citizens experienced in development, minority business enterprises, and creating jobs in low-income areas;

(2) it has the technical skills to analyze projects;

(3) it is familiar with other available public and private funding sources and economic development programs;

(4) it can initiate and implement economic development projects;

(5) it can establish and administer a revolving loan account; and

(6) it can work with job referral networks which assist minority and other persons in low-income areas.

Sec. 23.

Subd. 3.

Revolving loan fund.

(a) The board shall establish a revolving loan fund to make grants to nonprofit corporations for the purpose of making loans and loan guarantees to new and expanding businesses in a low-income areanew text begin, and to low-income personsnew text end to promote deleted text beginminoritydeleted text end business enterprises and job creation for minority and deleted text beginother persons in low-income areasdeleted text endnew text begin low-income persons throughout the seven-county metropolitan areanew text end.

(b) Eligible business enterprises include, but are not limited to, technologically innovative industries, value-added manufacturing, and information industries. Loan applications given preliminary approval by the nonprofit corporation must be forwarded to the board for approval. The commissioner must give final approval for each loan or loan guarantee made by the nonprofit corporation. The amount of the state funds contributed to any loan or loan guarantee may not exceed 50 percent of each loan.

Sec. 24.

Subd. 4.

Business loan criteria.

(a) The criteria in this subdivision apply to loans made or guaranteed by nonprofit corporations under the urban challenge grant program.

(b) Loans or guarantees must be made to businesses that are not likely to undertake a project for which loans are sought without assistance from the urban challenge grant program.

deleted text begin(c) A loan or guarantee must be used for a project designed to benefit persons in low-income areas through the creation of job or business opportunities for them. Priority must be given for loans to the lowest income areas.deleted text end

deleted text begin(d)deleted text endnew text begin (c)new text end The minimum state contribution to a loan or guarantee is $5,000 and the maximum is $150,000.

deleted text begin(e)deleted text endnew text begin (d)new text end The state contribution must be matched by at least an equal amount of new private investment.

deleted text begin(f)deleted text endnew text begin (e)new text end A loan may not be used for a retail development project.

deleted text begin(g)deleted text endnew text begin (f)new text end The business must agree to work with job referral networks that focus on minority applicants from low-income areas.

Sec. 25.

Subd. 8.

Reporting requirements.

A nonprofit corporation that receives a challenge grant shall:

(1) submit an annual report to the board by September 30 of each year that includes a description of projects supported by the urban challenge grant program, an account of loans made during the calendar year, the program's impact on minority business enterprises and job creation for minority persons andnew text begin low-incomenew text end persons deleted text beginin low-income areasdeleted text end, the source and amount of money collected and distributed by the urban challenge grant program, the program's assets and liabilities, and an explanation of administrative expenses; and

(2) provide for an independent annual audit to be performed in accordance with generally accepted accounting practices and auditing standards and submit a copy of each annual audit report to the board.

Extended employment program.

Sec. 28.

Minnesota Statutes 2014, section 268A.01, is amended by adding a subdivision to read:

new text beginSubd. 15.new text end

new text beginNoncompetitive employment.new text end

new text begin"Noncompetitive employment" means paid work: new text end

new text begin(1) that is performed on a full-time or part-time basis, including self-employment, for which the person is compensated at a rate that is less than the higher rate specified in the Fair Labor Standards Act of 1938, United States Code, title 29, section 206, subsection (a)(1), or the rate specified in the applicable state or local minimum wage law; and new text end

new text begin(2)(i) for which the person is paid less than the customary rate paid by the employer for the same or similar work performed by other nondisabled employees who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills; or new text end

new text begin(ii) which is performed at a location where the employee does not interact with nondisabled persons, not including supervisory personnel or persons who are providing services to the employee, to the same extent that nondisabled persons who are in comparable positions interact with other persons.new text end

(2) provide vocational rehabilitation services to persons with disabilities in accordance with the federal Rehabilitation Act of 1973, Public Law 93-112, as amended. Persons with a disability are entitled to free choice of vendor for any medical, dental, prosthetic, or orthotic services provided under this paragraph;

(3) expend funds and provide technical assistance for the establishment, improvement, maintenance, or extension of public and other nonprofit rehabilitation facilities or centers;

(4) maintain a contractual or regulatory relationship with the United States as authorized by the Social Security Act, as amended. Under this relationship, the state will undertake to make determinations referred to in those public laws with respect to all individuals in Minnesota, or with respect to a class or classes of individuals in this state that is designated in the agreement at the state's request. It is the purpose of this relationship to permit the citizens of this state to obtain all benefits available under federal law;

(5) provide an in-service training program for rehabilitation services employees by paying for its direct costs with state and federal funds;

(6) conduct research and demonstration projects; provide training and instruction, including establishment and maintenance of research fellowships and traineeships, along with all necessary stipends and allowances; disseminate information to persons with a disability and the general public; and provide technical assistance relating to vocational rehabilitation and independent living;

(7) receive and disburse pursuant to law money and gifts available from governmental and private sources including, but not limited to, the federal Department of Education and the Social Security Administration, for the purpose of vocational rehabilitation or independent living;

(8) design all state plans for vocational rehabilitation or independent living services required as a condition to the receipt and disbursement of any money available from the federal government;

(9) cooperate with other public or private agencies or organizations for the purpose of vocational rehabilitation or independent living. Money received from school districts, governmental subdivisions, mental health centers or boards, and private nonprofit organizations is appropriated to the commissioner for conducting joint or cooperative vocational rehabilitation or independent living programs;

(10) enter into contractual arrangements with instrumentalities of federal, state, or local government and with private individuals, organizations, agencies, or facilities with respect to providing vocational rehabilitation or independent living services;

(11) take other actions required by state and federal legislation relating to vocational rehabilitation, independent living, and disability determination programs;

(12) hire staff and arrange services and facilities necessary to perform the duties and powers specified in this section; and

(13) adopt, amend, suspend, or repeal rules necessary to implement or make specific programs that the commissioner by sections 268A.01 to 268A.15 is empowered to administer.

Subdivision 1.

Application.

Any city, town, county, nonprofit corporation, deleted text beginregional treatment center,deleted text end or any combination thereof, may apply to the commissioner for assistance in establishing or operating deleted text begina community rehabilitation facilitydeleted text endnew text begin an extended employment programnew text end. Application for assistance must be on forms prescribed by the commissioner. deleted text beginAn applicant is not eligible for a grant under this section unless its audited financial statements of the prior fiscal year have been approved by the commissioner.deleted text end

Subd. 2.

Funding.

In order to provide the necessary funds for extended employment programs offered by a new text begincommunity new text endrehabilitation deleted text beginfacilitydeleted text endnew text begin providernew text end, the governing body of any city, town, or county may expend money which may be available for such purposes in the general fund, and may levy a tax on the taxable property in the city, town, or county. Any city, town, county, or nonprofit corporation may accept gifts or grants from any source for the deleted text beginrehabilitation facilitydeleted text endnew text begin extended employment programnew text end. Any money appropriated, taxed, or received as a gift or grant may be used to match funds available on a matching basis.

Subd. 2.

Grievance procedure.

A new text begincommunity new text endrehabilitation deleted text beginfacilitydeleted text endnew text begin providernew text end must, as a condition for receiving program certification, provide to employees in deleted text begincenter-based deleted text endnew text beginnoncompetitivenew text end employment subprograms, a grievance procedure which has as its final step provisions for final and binding arbitration.

Subdivision 1.

Appointment; membership.

Every city, town, county, nonprofit corporation, or combination thereof establishing deleted text begina rehabilitation facilitydeleted text endnew text begin an extended employment programnew text end shall appoint a deleted text beginrehabilitation facilitydeleted text endnew text begin governingnew text end board of no fewer than seven voting members before becoming eligible for the assistance provided by sections 268A.06 to 268A.15. When any city, town, or county singly establishes deleted text beginsuch a rehabilitation facilitydeleted text endnew text begin an extended employment programnew text end, the new text begingoverning new text endboard shall be appointed by the chief executive officer of the city or the chair of the governing board of the county or town. When any combination of cities, towns, counties, or nonprofit corporations establishes deleted text begina rehabilitation facilitydeleted text endnew text begin an extended employment programnew text end, the chief executive officers of the cities, nonprofit corporations, and the chairs of the governing bodies of the counties or towns shall appoint the board. If a nonprofit corporation singly establishes deleted text begina rehabilitation facilitydeleted text endnew text begin an extended employment programnew text end, the corporation shall appoint the board of directors. Membership on a board shall be representative of the community served and shall include a person with a disability. If a county establishes an extended employment program and manages the program with county employees, the governing board shall be the county board of commissioners, and other provisions of this chapter pertaining to membership on the governing board do not apply.

Subd. 2.

Duties.

Subject to the provisions of sections 268A.06 to 268A.15 and the rules of the department, each deleted text beginrehabilitation facilitydeleted text endnew text begin governingnew text end board shall:

(1) review and evaluate the need for extended employment programs deleted text beginoffered by the rehabilitation facilitydeleted text end provided under sections 268A.06 to 268A.15;

(2) recruit and promote local financial support for extended employment programs from private sources including: the United Way; business, industrial, and private foundations; voluntary agencies; and other lawful sources, and promote public support for municipal and county appropriations;

(3) promote, arrange, and implement working agreements with other educational and social service agencies, both public and private, and any other allied agencies; and

(4) when an extended employment program deleted text beginoffered by the rehabilitation facilitydeleted text end is certified, act as deleted text beginthedeleted text endnew text begin itsnew text end administrator deleted text beginof the rehabilitation facility and its programsdeleted text end for purposes of this chapter.

Sec. 33.

Subd. 3.

Rule authority.

The commissioner shall adopt rules on an individual's eligibility for the extended employment program, the certification of new text begincommunity new text endrehabilitation deleted text beginfacilitiesdeleted text endnew text begin providersnew text end, and the methods, criteria, and units of distribution for the allocation of state grant funds to certified deleted text beginrehabilitation facilitiesdeleted text endnew text begin extended employment program providersnew text end. In determining the allocation, the commissioner must consider the economic conditions of the community and the performance of new text begincommunity new text endrehabilitation deleted text beginfacilitiesdeleted text endnew text begin providersnew text end relative to their impact on the economic status of workers in the extended employment program.

Sec. 34.

Minnesota Statutes 2014, section 469.049, is amended to read:

469.049 ESTABLISHMENT; CHARACTERISTICS.

Subdivision 1.

Saint Paul, Duluth; establishment.

The Port Authority of Saint Paul and the seaway port authority of Duluth are established. The Seaway Port Authority of Duluth may also be known as the Duluth Seaway Port Authority.new text begin The Port Authority of Saint Paul may also be known as the Saint Paul Port Authority, and the Saint Paul Port Authority may file one or more certificates of assumed name with the secretary of state, as provided in sections 333.01 to 333.065.new text end

Subd. 2.

Public body characteristics.

A port authority is a body politic and corporate with the right to sue and be sued in its own name.

A port authority carries out an essential governmental function of the state when it exercises its power, but the authority is not immune from liability because of this.

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 35.

Subd. 4.

Term, vacancies.

new text begin(a) new text endThe first commissioners of a three-member commission are appointed for initial terms as follows: one for two years; one for four years; and one for six years. The first commissioners of a seven-member commission are appointed for initial terms as follows: one member for a term of one, two, three, four, and five years, respectively, and two members for terms of six years. For subsequent terms, the term is six years. A vacancy is created in Saint Paul when a city council member of the authority ends council membership and in Duluth when a county board member of the authority ends county board membership. A vacancy on any port authority must be filled by the appointing authority for the balance of the term subject to the same approval and consent, if any, required for an appointment for a full term. For Duluth, if the governor or the county board fails to make a required appointment within 60 days after a vacancy occurs, the city council has sole power to appoint a successor.

new text begin(b) The term of each commissioner of the Saint Paul Port Authority begins August 1 of the year in which the commissioner is appointed and ends July 31 of the sixth year. Notwithstanding the end of a term of appointment, a commissioner shall serve until reappointed or a new commissioner has been appointed and taken office.new text end

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 36.

Subd. 3.

Consent for city land.

The port authority must not take lands owned, controlled, or used by the city of St. Paul without consent of the city councilnew text begin, or owned, controlled, or used by Ramsey County without consent of the county boardnew text end.

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 37.

Subd. 4.

Port jurisdiction.

For all other recreation purposes the port authority has jurisdiction over the use of all the navigable rivers or lakes and all the parks and recreation facilities abutting the rivers and lakesnew text begin within its port districtnew text end.

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 38.

Subd. 8.

Relation to industrial development provisions.

Notwithstanding any law to the contrary, the port authority deleted text beginof the city of St. Pauldeleted text end, under sections 469.048 to 469.068 and this section, may do what a redevelopment agency may do or must do under sections 469.152 to 469.165 to further any of the purposes of sections 469.048 to 469.068and subdivisions 1 to 8. The port authority may use its powers and duties under sections 469.048 to 469.068 and subdivisions 1 to 8 to further the purposes of sections 469.152to 469.165. The powers and duties in subdivisions 1 to 8 are in addition to the powers and duties of the port authority under sections 469.048 to 469.068, and under sections 469.152 to 469.165. The port authority may use its powers for industrial development or to establish industrial development districts. If the term "industrial" is used in relation to industrial development purposes under sections 469.048 to 469.068, the term includes "economic" and "economic development."new text begin The port authority may work with and provide services to any federal or state agency, county, city, or other governmental unit or agency with the written consent of that agency or governmental unit.new text end

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 39.

Subd. 9.

May join in supplying small business capital.

Notwithstanding any contrary law, the port authority deleted text beginof the city of St. Pauldeleted text end may participate with public or private corporations or other entities, whose purpose is to provide venture capital to small businesses that have facilities located or to be located in the port district. For that purpose the port authority may use not more than ten percent of available annual net income or $400,000 annually, whichever is less, to acquire or invest in securities of, and enter into financing arrangements and related agreements with, the corporations or entities. The participation by the port authority must not exceed in any year 25 percent of the total amount of funds provided for venture capital purposes by all of the participants. The corporation or entity shall report in writing each month to the commissioners of the port authority all investment and other action taken by it since the last report. Funds contributed to the corporation or entity must be invested pro rata with each contributor of capital taking proportional risks on each investment. As used in this subdivision, the term "small business" has the meaning given it in section 645.445, subdivision 2.

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 40.

Subd. 10.

Recreation facilities on Mississippi River.

The port authority deleted text beginof the city of Saint Pauldeleted text end has jurisdiction over the use of the Mississippi River for recreation purposes within its port district and may acquire and may spend port authority money for lands abutting the river within the port district to construct, operate directly, by lease or otherwise, and maintain recreation facilities. The authority shall establish rules on the use of the river and abutting lands, either individually, or in cooperation with the federal government or its agencies, new text beginRamsey County, new text endthe city of Saint Paul, the state, or a state agency, or political subdivision.

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 41.

Subd. 14.

Bond for treasurer and assistant treasurer.

The treasurer and assistant treasurer of the port authority deleted text beginof the city of Saint Pauldeleted text end shall give bond to the state in sums not to exceed $25,000 and $10,000 respectively. The bonds must be conditioned for the faithful discharge of their duties. The bonds must be approved as to both form and surety by the port authority and must be filed with its secretary. The amount of the bonds must be set at least annually by the port authority.

new text beginEFFECTIVE DATE; LOCAL APPROVAL.new text end

new text beginThis section is effective the day following timely compliance of the governing body of the Port Authority of Saint Paul, and its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end

Sec. 42.

new text beginSKILLED MANUFACTURING REPORT.new text end

new text beginThe commissioner shall coordinate and monitor customized training programs for skilled manufacturing industries at participating MnSCU institutions. By January 15, 2017, the commissioner, in conjunction with each participating MnSCU institution, shall report to the standing committees of the house of representatives and the senate having jurisdiction over employment and workforce development. The report must address the progress and success of the implementation of a customized training program for skilled manufacturing industries at each participating MnSCU institution. The report must give recommendations on where a skilled manufacturing customized training program should next be implemented, taking into consideration all current and potential skilled manufacturing training providers available.new text end

new text beginThe commissioner of employment and economic development, in consultation with the commissioner of health, shall review existing workforce development programs in order to further the advancement of long-term care careers in rural Minnesota. The commissioner shall report recommendations regarding training, retaining, and connecting employees to long-term care facilities in rural Minnesota to the chairs and ranking minority members of the legislative committees with jurisdiction over long-term care and workforce development by February 1, 2016.new text end

ARTICLE 3

HOUSING

Section 1.

Subdivision 1.

Rules.

No domestic animals or house pets of occupants of manufactured home parks or recreational camping areas shall be allowed to run at large, or commit any nuisances within the limits of a manufactured home park or recreational camping area. Each manufactured home park or recreational camping area licensed under the provisions of sections 327.10, 327.11, and 327.14 to 327.28 shall, among other things, provide for the following:

(1) A responsible attendant or caretaker shall be in charge of every manufactured home park or recreational camping area at all times, who shall maintain the park or area, and its facilities and equipment in a clean, orderly and sanitary condition. In any manufactured home park containing more than 50 lots, the attendant, caretaker, or other responsible park employee, shall be readily available at all times in case of emergency.

(2) All manufactured home parks shall be well drained and be located so that the drainage of the park area will not endanger any water supply. No wastewater from manufactured homes or recreational camping vehicles shall be deposited on the surface of the ground. All sewage and other water carried wastes shall be discharged into a municipal sewage system whenever available. When a municipal sewage system is not available, a sewage disposal system acceptable to the state commissioner of health shall be provided.

(3) No manufactured home shall be located closer than three feet to the side lot lines of a manufactured home park, if the abutting property is improved property, or closer than ten feet to a public street or alley. Each individual site shall abut or face on a driveway or clear unoccupied space of not less than 16 feet in width, which space shall have unobstructed access to a public highway or alley. There shall be an open space of at least ten feet between the sides of adjacent manufactured homes including their attachments and at least three feet between manufactured homes when parked end to end. The space between manufactured homes may be used for the parking of motor vehicles and other propertydeleted text begin, if the vehicle or other property is parked at least ten feet from the nearest adjacent manufactured home positiondeleted text end. The requirements of this paragraph shall not apply to recreational camping areas and variances may be granted by the state commissioner of health in manufactured home parks when the variance is applied for in writing and in the opinion of the commissioner the variance will not endanger the health, safety, and welfare of manufactured home park occupants.

(4) An adequate supply of water of safe, sanitary quality shall be furnished at each manufactured home park or recreational camping area. The source of the water supply shall first be approved by the state Department of Health.

(5) All plumbing shall be installed in accordance with the rules of the state commissioner of labor and industry and the provisions of the Minnesota Plumbing Code.

(6) In the case of a manufactured home park with less than ten manufactured homes, a plan for the sheltering or the safe evacuation to a safe place of shelter of the residents of the park in times of severe weather conditions, such as tornadoes, high winds, and floods. The shelter or evacuation plan shall be developed with the assistance and approval of the municipality where the park is located and shall be posted at conspicuous locations throughout the park. The park owner shall provide each resident with a copy of the approved shelter or evacuation plan, as provided by section 327C.01, subdivision 1c. Nothing in this paragraph requires the Department of Health to review or approve any shelter or evacuation plan developed by a park. Failure of a municipality to approve a plan submitted by a park shall not be grounds for action against the park by the Department of Health if the park has made a good faith effort to develop the plan and obtain municipal approval.

(7) A manufactured home park with ten or more manufactured homes, licensed prior to March 1, 1988, shall provide a safe place of shelter for park residents or a plan for the evacuation of park residents to a safe place of shelter within a reasonable distance of the park for use by park residents in times of severe weather, including tornadoes and high winds. The shelter or evacuation plan must be approved by the municipality by March 1, 1989. The municipality may require the park owner to construct a shelter if it determines that a safe place of shelter is not available within a reasonable distance from the park. A copy of the municipal approval and the plan shall be submitted by the park owner to the Department of Health. The park owner shall provide each resident with a copy of the approved shelter or evacuation plan, as provided by section 327C.01, subdivision 1c.

(8) A manufactured home park with ten or more manufactured homes, receiving an initial license after March 1, 1988, must provide the type of shelter required by section 327.205, except that for manufactured home parks established as temporary, emergency housing in a disaster area declared by the President of the United States or the governor, an approved evacuation plan may be provided in lieu of a shelter for a period not exceeding 18 months.

(9) For the purposes of this subdivision, "park owner" and "resident" have the meanings given them in section 327C.01.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 2.

Subdivision 1.

Created.

The economic development and housing challenge program is created to be administered by the agency.

(a) The program shall provide grants or loans for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to support economic development and redevelopment activities or job creation or job preservation within a community or region by meeting locally identified housing needs.

Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition, rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household can afford for housing, based on industry standards and practices.

(b) Preference for grants and loans shall be given to comparable proposals that include regulatory changes or waivers that result in identifiable cost avoidance or cost reductions, such as increased density, flexibility in site development standards, or zoning code requirements. Preference must also be given among comparable proposals to proposals for projects that are accessible to transportation systems, jobs, schools, and other services.

(c) If a grant or loan is used for demolition or removal of existing structures, the cleared land must be used for the construction of housing to be owned or rented by persons who meet the income limits of this section or for other housing-related purposes that primarily benefit the persons residing in the adjacent housing. In making selections for grants or loans for projects that demolish affordable housing units, the agency must review the potential displacement of residents and consider the extent to which displacement of residents is minimized.

new text begin(d) Fifty percent of the funds appropriated for this section must be for projects located in the metropolitan area, as defined in section 473.121, subdivision 2, and 50 percent must be for projects outside the metropolitan area, as defined in section 473.121, subdivision 2. Funds not awarded in a fiscal year may be carried over and used without geographic restriction.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 1, 2017.new text end

Sec. 3.

Minnesota Statutes 2014, section 473.145, is amended to read:

473.145 DEVELOPMENT GUIDE.

The Metropolitan Council shall prepare and adopt, after appropriate study and such public hearings as may be necessary, a comprehensive development guide for the metropolitan area. It shall consist of a compilation of policy statements, goals, standards, programs, and maps prescribing guides for the orderly and economical development, public and private, of the metropolitan area. The comprehensive development guide shall recognize and encompass physical, social, or economic needs of the metropolitan area and those future developments which will have an impact on the entire area including but not limited to such matters as land use, parks and open space land needs, the necessity for and location of airports, highways, transit facilities, public hospitals, libraries, schools, and other public buildings.new text begin Notwithstanding any council action to adopt it, a plan or plan element relating to housing does not take effect until a law is enacted approving the plan.new text end

new text beginEFFECTIVE DATE; APPLICATION.new text end

new text beginThis section is effective the day following final enactment and applies to plans adopted before, on, or after that date. This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.new text end

Sec. 4.

Subd. 2.

Affordable, life-cycle goals.

new text begin(a) new text endThe council shall negotiate with each municipality to establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide. The council shall adopt, by resolution after a public hearing, the negotiated affordable and life-cycle housing goals for each municipality by January 15, 1996, and by January 15 in each succeeding year for each municipality newly electing to participate in the program or for each municipality with which new housing goals have been negotiated. By June 30, 1996, and by June 30 in each succeeding year for each municipality newly electing to participate in the program or for each municipality with which new housing goals have been negotiated, each municipality shall identify to the council the actions it plans to take to meet the established housing goals.

new text begin(b) Beginning in 2016, the negotiated affordable and life-cycle housing goals for each municipality must be submitted by January 15 each year to the chairs and ranking minority members of the legislative committees with jurisdiction over the Metropolitan Council and housing policy and finance, and may be adopted by the council only after a law is enacted approving the goals or the legislature has adjourned its regular session for that calendar year without taking any action on the matter.new text end

new text beginEFFECTIVE DATE; APPLICATION.new text end

new text beginThis section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.new text end

Sec. 5.

Subd. 3a.

Affordable, life-cycle housing opportunities amount.

(a) Each municipality's "affordable and life-cycle housing opportunities amount" for that year must be determined annually by the council using the method in this subdivision. The affordable and life-cycle housing opportunities amount must be determined for each calendar year for all municipalities in the metropolitan area.

(b) The council must allocate to each municipality its portion of the $1,000,000 of the revenue generated by the levy authorized in section 473.249 which is credited to the local housing incentives account pursuant to subdivision 5, paragraph (b). The allocation must be made by determining the amount levied for and payable in each municipality in the previous calendar year pursuant to the council levy in section 473.249 divided by the total amount levied for and payable in the metropolitan area in the previous calendar year pursuant to such levy and multiplying that result by $1,000,000.

(c) The council must also determine the amount levied for and payable in each municipality in the previous calendar year pursuant to the council levy in section 473.253, subdivision 1.

(d) A municipality's affordable and life-cycle housing opportunities amount for the calendar year is the sum of the amounts determined under paragraphs (b) and (c).

new text begin(e) The council must report the council's estimated amount under paragraph (d) to the chairs and ranking minority members of the legislative committees with jurisdiction over the Metropolitan Council and housing policy and finance by March 15 each year. The legislature may approve, modify, or reject the amounts the council will use in paragraph (f). If no law is enacted to approve, modify, or reject the amounts during the regular legislative session for that calendar year, the council may proceed with its proposed amounts.new text end

deleted text begin(e)deleted text endnew text begin (f)new text end By August 1 of each year, the council must notify each municipality of its affordable and life-cycle housing opportunities amount for the following calendar year determined by the method in this subdivision.

new text beginEFFECTIVE DATE; APPLICATION.new text end

new text beginThis section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.new text end

Sec. 6.

new text beginSubdivision 1.new text end

new text beginCity and county appointees as HRA.new text end

Notwithstanding Minnesota Statutes, section 469.006, the Olmsted County Housing and Redevelopment Authority has seven members, four appointed by the city council of the city of Rochester and three appointed by the county board of Olmsted county. Of the first four appointees of the city council under this act, one must be appointed for a one-year term, two for two-year terms, and one for a three-year term. Of the first three appointees of the county board under this act, one must be appointed for a one-year term, one for a two-year term, and one for a three-year term. Later appointments to fill terms are for five years. An appointment to a vacancy is for the unexpired term.

new text beginSubd. 2.new text end

new text beginCounty board may serve as HRA.new text end

new text beginNotwithstanding subdivision 1, the county board may by resolution provide that the Olmsted County Board will constitute the county housing and redevelopment authority and the appointment procedures in subdivision 1 shall not apply. If the Olmsted County Board acts under this subdivision, it must also provide in the resolution for any additional members needed to comply with Code of Federal Regulations, title 24, part 964.new text end

new text beginEFFECTIVE DATE; TRANSITION.new text end

new text beginThis section is effective the day after the latter of the city council of the city of Rochester and the Olmsted County Board of Commissioners and their respective chief clerical officers timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Terms of members of the Olmsted County Housing and Redevelopment Authority serving on or after the effective date of this section terminate as provided in the resolution adopted by the county board.new text end

ARTICLE 4

LABOR AND INDUSTRY

Section 1.

Subdivision 1.

General duties of commissioner.

(a)(1) The commissioner shall have all the usual powers and authorities necessary for the discharge of the commissioner's duties under this section and may contract with individuals in discharge of those duties. The commissioner shall audit the reserves established (i) for individual cases arising under policies and contracts of coverage issued under subdivision 4 and (ii) for the total book of business issued under subdivision 4. If the commissioner determines on the basis of an audit that there is an excess surplus in the assigned risk plan, the commissioner must notify the commissioner of management and budget who shall transfer assets of the plan equal to the excess surplus to the deleted text beginbudget reserve account in the general funddeleted text endnew text begin assigned risk safety account in the special compensation fund in the state treasury for grants under section 79.253new text end.

(2) The commissioner shall monitor the operations of section 79.252 and this section and shall periodically make recommendations to the governor and legislature when appropriate, for improvement in the operation of those sections.

(3) All insurers and self-insurance administrators issuing policies or contracts under subdivision 4 shall pay to the commissioner a .25 percent assessment on premiums for policies and contracts of coverage issued under subdivision 4 for the purpose of defraying the costs of performing the duties under clauses (1) and (2). Proceeds of the assessment shall be deposited in the state treasury and credited to the general fund.

(4) The assigned risk plan shall not be deemed a state agency.

(5) The commissioner shall monitor and have jurisdiction over all reserves maintained for assigned risk plan losses.

(b) As used in this subdivision, "excess surplus" means the amount of assigned risk plan assets in excess of the amount needed to pay all current liabilities of the plan, including, but not limited to:

(1) administrative expenses;

(2) benefit claims; and

(3) if the assigned risk plan is dissolved under subdivision 8, the amounts that would be due insurers who have paid assessments to the plan.

Sec. 2.

new text begin[175.45] COMPETENCY STANDARDS FOR DUAL TRAINING.new text end

new text beginSubdivision 1.new text end

new text beginDuties; goal.new text end

new text beginThe commissioner of labor and industry shall identify competency standards for dual training. The goal of dual training is to provide current employees of an employer with training to acquire competencies that the employer requires. The standards shall be identified for employment in occupations in advanced manufacturing, health care services, information technology, and agriculture. Competency standards are not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do not apply.new text end

new text beginSubd. 2.new text end

new text beginDefinition; competency standard.new text end

new text begin For purposes of this section, "competency standards" means the specific knowledge and skills necessary for a particular occupation.new text end

new text beginSubd. 3.new text end

new text beginCompetency standard identification process.new text end

new text beginIn identifying competency standards, the commissioner shall consult with the commissioner of employment and economic development and convene recognized industry experts, representative employers, higher education institutions, and representatives of labor to assist in identifying credible competency standards. Competency standards must be based on recognized international and national standards, to the extent that such standards are available and practical.new text end

new text beginSubd. 5.new text end

new text beginNotification.new text end

new text beginThe commissioner must communicate identified competency standards to the commissioner of employment and economic development for the purpose of the dual training competency grant program under section 116L.31. The commissioner of labor and industry shall maintain the competency standards on the department's Web site.new text end

Sec. 3.

Subdivision 1.

Amount.

(a) For purposes of this subdivision, the terms defined in this paragraph have the meanings given them.

(1) "Large employer" means an enterprise whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21 to 177.35.

(2) "Small employer" means an enterprise whose annual gross volume of sales made or business done is less than $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21 to 177.35.

(1) every large employer must pay each employee wages at a rate of at least:

(i) $8.00 per hour beginning August 1, 2014;

(ii) $9.00 per hour beginning August 1, 2015;

(iii) $9.50 per hour beginning August 1, 2016; and

(iv) the rate established under paragraph (f) beginning January 1, 2018; and

(2) every small employer must pay each employee at a rate of at least:

(i) $6.50 per hour beginning August 1, 2014;

(ii) $7.25 per hour beginning August 1, 2015;

(iii) $7.75 per hour beginning August 1, 2016; and

(iv) the rate established under paragraph (f) beginning January 1, 2018.

(c) Notwithstanding paragraph (b), during the first 90 consecutive days of employment, an employer may pay an employee under the age of 20 years a wage of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement through a reduction in hours, wages, or employment benefits, in order to hire an employee at the wage authorized in this paragraph.

deleted text begin(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15, subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer that includes the provision by the employer of a food or lodging benefit, if the employee is working under authority of a summer work travel exchange visitor program (J) nonimmigrant visa, a wage of at least:deleted text end

deleted text begin(4) the rate established under paragraph (f) beginning January 1, 2018.deleted text end

deleted text beginNo employer may take any action to displace an employee, including a partial displacement through a reduction in hours, wages, or employment benefits, in order to hire an employee at the wage authorized in this paragraph.deleted text end

deleted text begin(e)deleted text endnew text begin (d)new text end Notwithstanding paragraph (b), a large employer must pay an employee under the age of 18 at a rate of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement through a reduction in hours, wages, or employment benefits, in order to hire an employee at the wage authorized in this paragraph.

new text begin(e) Notwithstanding paragraph (b), every employer must pay an employee receiving gratuities a wage of at least:new text end

new text begin(1) $8.00 per hour if the employee earns sufficient gratuities during the workweek so that the sum of $8.00 per hour and gratuities received averages at least $12.00 per hour for the workweek; ornew text end

new text begin(2) the greater of the wage rate under this section or United States Code, title 29, section 206(a)(1), if the employee does not earn sufficient gratuities during the workweek so that the sum of $8.00 per hour and gratuities received averages at least $12.00 per hour for the workweek.new text end

new text beginFor the purposes of this section, "employee receiving gratuities" means an employee who customarily and regularly receives more than $30 per month in gratuities. The employer must inform a potential employee who may receive gratuities, during the employment interview, of the applicable wage under this paragraph. The employer must provide the potential employee with a written copy of the wages required under this paragraph and the potential employee shall initial the form indicating he or she has received the notice. A copy of the signed notice must be kept on file by the employer. If the Minnesota Department of Human Rights makes three or more probable cause determinations of sexual harassment as defined in section 363A.03, subdivision 43, regarding a single employer, this paragraph no longer applies to that employer and the employer must pay all employees the otherwise applicable minimum wage under this section.new text end

(f) No later than August 31 of each year, beginning in 2017, the commissioner shall determine the percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis during the 12-month period immediately preceding that August or, if that data is unavailable, during the most recent 12-month period for which data is available. The minimum wage rates in paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new minimum wage rates determined under this paragraph take effect on the next January 1.

(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner may issue an order that an increase calculated under paragraph (f) not take effect. The commissioner may issue the order only if the commissioner, after consultation with the commissioner of management and budget, finds that leading economic indicators, including but not limited to projections of gross domestic product calculated by the United States Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates, indicate the potential for a substantial downturn in the state's economy. Prior to issuing an order, the commissioner shall also calculate and consider the ratio of the rate of the calculated change in the minimum wage rate to the rate of change in state median income over the same time period used to calculate the change in wage rate. Prior to issuing the order, the commissioner shall hold a public hearing, notice of which must be published in the State Register, on the department's Web site, in newspapers of general circulation, and by other means likely to inform interested persons of the hearing, at least ten days prior to the hearing. The commissioner must allow interested persons to submit written comments to the commissioner before the public hearing and for 20 days after the public hearing.

(2) The commissioner may in a year subsequent to issuing an order under clause (1), make a supplemental increase in the minimum wage rate in addition to the increase for a year calculated under paragraph (f). The supplemental increase may be in an amount up to the full amount of the increase not put into effect because of the order. If the supplemental increase is not the full amount, the commissioner may make a supplemental increase of the difference, or any part of a difference, in a subsequent year until the full amount of the increase ordered not to take effect has been included in a supplemental increase. In making a determination to award a supplemental increase under this clause, the commissioner shall use the same considerations and use the same process as for an order under clause (1). A supplemental wage increase is not subject to and shall not be considered in determining whether a wage rate increase exceeds the limits for annual wage rate increases allowed under paragraph (f).

Sec. 4.

Minnesota Statutes 2014, section 177.24, is amended by adding a subdivision to read:

new text beginSubd. 3a.new text end

new text beginGratuities; credit cards or charges.new text end

new text begin(a) Gratuities presented to an employee via inclusion on a debit, charge, or credit card shall be credited to that pay period in which they are received by the employee and for which they appear on the employee's tip statement.new text end

new text begin(b) Where a gratuity is given by a customer through a debit, charge, or credit card, the full amount of gratuity must be allowed the employee.new text end

Sec. 5.

Minnesota Statutes 2014, section 177.24, is amended by adding a subdivision to read:

new text beginSubd. 6.new text end

new text beginUniform state minimum wage; local variation prohibited.new text end

new text begin(a) Except as provided in this subdivision, a local unit of government may not require the payment of a minimum wage that is different than the minimum wage set by this section.new text end

new text begin(b) This subdivision does not apply to wages paid:new text end

new text begin(1) to an employee of the local unit of government;new text end

new text begin(2) for services provided by an individual to the local unit of government under a contract or subcontract with the local unit of government; andnew text end

new text begin(3) for services provided by an individual that are funded in whole or part by financial assistance from the local unit of government.new text end

new text begin(c) For the purpose of this subdivision, "local unit of government" means a statutory or home rule charter city, town, county, Metropolitan Council, Metropolitan Airports Commission, other metropolitan agencies, and other political subdivisions.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment and applies to a local unit of government requirement that was established before, on, or after that date.new text end

Sec. 6.

new text begin[181.741] LOCAL GOVERNMENT; UNIFORMITY OF PRIVATE EMPLOYER BENEFIT MANDATES.new text end

new text begin(a) A local unit of government may not establish, mandate, or otherwise require a private employer to provide an employee who is employed within the jurisdiction of the local unit of government a benefit that exceeds the requirements of federal or state law, rules, or regulations.new text end

new text begin(b) This section does not apply to benefits paid or granted:new text end

new text begin(1) to an employee of the local unit of government;new text end

new text begin(2) under a contract or subcontract for services provided by an individual to the local unit of government; ornew text end

new text begin(3) under a contract for services provided by an individual that are funded in whole or in part by financial assistance from the local unit of government.new text end

new text begin(c) For purposes of this section, "local unit of government" must be broadly construed and includes, without limitation, a statutory or home rule charter city, town, county, Metropolitan Council, Metropolitan Airports Commission, other metropolitan agencies, and other political subdivisions.new text end

new text begin(d) For purposes of this section, the term "benefit" must be broadly construed and includes, without limitation, attendance or leave policy, scheduling policy, term of employment, paid or unpaid leave, any monetary or nonmonetary compensation.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment and applies to a local unit of government mandate or requirement that was established before, on, or after that date.new text end

Sec. 7.

Minnesota Statutes 2014, section 299F.011, is amended by adding a subdivision to read:

new text beginSubd. 4d.new text end

new text beginSingle-family dwelling; fire sprinklers.new text end

new text begin(a) The State Building Code, the State Fire Code, or a political subdivision of the state by code, by ordinance, as a condition of receiving public funding, or in any other way, must not require the installation of fire sprinklers, any fire sprinkler system components, or automatic fire-extinguishing equipment or devices in any new or existing single-family detached dwelling unit.new text end

new text begin(b) Nothing in this subdivision shall be construed to affect or limit a requirement for smoke or fire detectors, alarms, or their components.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 8.

Subd. 7.

License fees and license renewal fees.

(a) The license fee for each license is the base license fee plus any applicable board fee, continuing education fee, and contractor recovery fund fee and additional assessment, as set forth in this subdivision.

(b) For purposes of this section, "license duration" means the number of years for which the license is issued except that:

(1) if the initial license is not issued for a whole number of years, the license duration shall be rounded up to the next whole number; and

(2) if the department receives an application for license renewal after the renewal deadline, license duration means the number of years for which the renewed license would have been issued if the renewal application had been submitted on time and all other requirements for renewal had been met.

(c) The base license fee shall depend on whether the license is classified as an entry level, master, journeyman, or business license, and on the license duration. The base license fee shall be:

(d) If there is a continuing education requirement for renewal of the license, then a continuing education fee must be included in the renewal license fee. The continuing education fee for all license classifications shall be: $10 if the renewal license duration is one year;new text begin andnew text end $20 if the renewal license duration is two yearsdeleted text begin; and $30 if the renewal license duration is three yearsdeleted text end.

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.93, then a board fee must be included in the license fee and the renewal license fee. The board fee for all license classifications shall be: $4 if the license duration is one year; $8 if the license duration is two yearsdeleted text begin; and $12 if the license duration is three yearsdeleted text end.

(f) If the application is for the renewal of a license issued under sections 326B.802 to 326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 3, and any additional assessment required under section 326B.89, subdivision 16, must be included in the license renewal fee.

new text begin(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period July 1, 2015, through June 30, 2017, the following fees apply:new text end

new text beginLicense Classificationnew text end

new text beginLicense Durationnew text end

new text begin1 yearnew text end

new text begin2 yearsnew text end

new text beginEntry levelnew text end

new text begin$10new text end

new text begin$20new text end

new text beginJourneyworkernew text end

new text begin$15new text end

new text begin$35new text end

new text beginMasternew text end

new text begin$30new text end

new text begin$75new text end

new text beginBusinessnew text end

new text begin$160new text end

new text beginIf there is a continuing education requirement for renewal of the license, then a continuing education fee must be included in the renewal license fee. The continuing education fee for all license classifications shall be $5.new text end

Sec. 9.

Minnesota Statutes 2014, section 326B.096, is amended to read:

326B.096 REINSTATEMENT OF LICENSES.

Subdivision 1.

Reinstatement after revocation.

(a) If a license is revoked under this chapter and if an applicant for a license needs to pass an examination administered by the commissioner before becoming licensed, then, in order to have the license reinstated, the person who holds the revoked license must:

(1) retake the examination and achieve a passing score; and

(2) meet all other requirements for an initial license, including payment of the application and examination fee and the license fee. The person holding the revoked license is not eligible for Minnesota licensure without examination based on reciprocity.

(b) If a license is revoked under a chapter other than this chapter, then, in order to have the license reinstated, the person who holds the revoked license must:

(1) apply for reinstatement to the commissioner no later than two years after the effective date of the revocation;

(3) meet all applicable requirements for licensure, except that, unless required by the order revoking the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the revocation.

Subd. 2.

Reinstatement after suspension.

If a license is suspended, then, in order to have the license reinstated, the person who holds the suspended license must:

(1) apply for reinstatement to the commissioner no later than two years after the completion of the suspension period;

(3) meet all applicable requirements for licensure, except that, unless required by the order suspending the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the suspension.

Subd. 3.

Reinstatement after voluntary termination.

A licensee who is not an individual may voluntarily terminate a license issued to the person under this chapter. If a licensee has voluntarily terminated a license under this subdivision, then, in order to have the license reinstated, the person who holds the terminated license must:

(1) apply for reinstatement to the commissioner no later than the date that the license would have expired if it had not been terminated;

new text beginEFFECTIVE DATE.new text end

Sec. 10.

Subdivision 1.

Adoption of code.

new text begin(a) new text endSubject tonew text begin paragraphs (c) and (d) and new text endsections 326B.101 to 326B.194, the commissioner shall by rule and in consultation with the Construction Codes Advisory Council establish a code of standards for the construction, reconstruction, alteration, and repair of buildings, governing matters of structural materials, design and construction, fire protection, health, sanitation, and safety, including design and construction standards regarding heat loss control, illumination, and climate control. The code must also include duties and responsibilities for code administration, including procedures for administrative action, penalties, and suspension and revocation of certification. The code must conform insofar as practicable to model building codes generally accepted and in use throughout the United States, including a code for building conservation. In the preparation of the code, consideration must be given to the existing statewide specialty codes presently in use in the state. Model codes with necessary modifications and statewide specialty codes may be adopted by reference. The code must be based on the application of scientific principles, approved tests, and professional judgment. To the extent possible, the code must be adopted in terms of desired results instead of the means of achieving those results, avoiding wherever possible the incorporation of specifications of particular methods or materials. To that end the code must encourage the use of new methods and new materials. Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the provisions of those sections.

new text begin(b) new text endThe commissioner shall develop rules addressing the plan review fee assessed to similar buildings without significant modifications including provisions for use of building systems as specified in the industrial/modular program specified in section 326B.194. Additional plan review fees associated with similar plans must be based on costs commensurate with the direct and indirect costs of the service.

new text begin(c) Beginning with the 2018 edition of the model building codes and every six years thereafter, the commissioner shall review the new model building codes and adopt the model codes as amended for use in Minnesota within two years of the published edition date. The commissioner may adopt amendments to the building codes prior to the adoption of the new building codes to advance construction methods, technology, or materials or, where necessary, to protect the health, safety, and welfare of the public or to improve the efficiency or the use of a building.new text end

new text begin(d) Notwithstanding paragraph (c), the commissioner shall act on each new model residential energy code and the new model commercial energy code in accordance with federal law for which the United States Department of Energy has issued an affirmative positive determination in compliance with United States Code, title 42, section 6833. The commissioner may adopt amendments prior to adoption of the new energy codes, as amended for use in Minnesota, to advance construction methods, technology, or materials or, where necessary, to protect the health, safety, and welfare of the public or to improve the efficiency or use of the building.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 1, 2015, and applies to all model code adoptions beginning with the 2018 model building code.new text end

Sec. 11.

Subd. 8.

Effective date of rules.

A rule to adopt or amend the State Building Code is effective deleted text begin180deleted text endnew text begin 270new text end days after publication of the rule's notice of adoption in the State Register. The rule may provide for a later effective date. The rule may provide for an earlier effective date if the commissioner deleted text beginor boarddeleted text end proposing the rule finds that an earlier effective date is necessary to protect public health and safety after considering, among other things, the need for time for training of individuals to comply with and enforce the rule.new text begin The commissioner must publish an electronic version of the entire adopted rule chapter on the department's Web site within ten days of receipt from the revisor of statutes. The commissioner shall clearly indicate the effective date of the rule on the department's Web site.new text end

Sec. 12.

Minnesota Statutes 2014, section 326B.809, is amended to read:

326B.809 WRITTEN CONTRACT REQUIRED.

(a) All agreements including proposals, estimates, bids, quotations, contracts, purchase orders, and change orders between a licensee and a customer for the performance of a licensee's services must be in writing and must contain the following:

(1) a detailed summary of the services to be performed;

(2) a description of the specific materials to be used or a list of standard features to be included; and

(3) the total contract price or a description of the basis on which the price will be calculated.

(b) Before entering into an agreement, the licensee shall provide a prospective customer with written performance guidelines for the services to be performed. Performance guidelines also must be included or incorporated by reference in the agreement. All agreements shall be signed and dated by the licensee and customer.

new text begin(c) Before entering into an agreement, the licensee shall offer a prospective customer the option to install fire sprinklers, any fire sprinkler system components, or automatic fire-extinguishing equipment or devices in any new single-family detached dwelling unit. The offer shall be included or incorporated by reference in the agreement. All agreements shall be signed and dated by the licensee and customer.new text end

deleted text begin(c)deleted text endnew text begin(d) new text endThe licensee shall provide to the customer, at no charge, a signed and dated document at the time that the licensee and customer sign and date the document. Documents include agreements, performance guidelines, new text beginfire sprinkler opt-in forms, new text endand mechanic's lien waivers.

Sec. 14.

Subd. 8.

Certificate of competency.

deleted text beginThe fee for issuance of the original certificate of competency is $85 for inspectors who did not pay the national board examination fee specified in subdivision 6, or $35 for inspectors who paid that examination fee.deleted text endnew text begin(a) new text endEach applicant for a certificate of competency must complete an interview with the chief boiler inspector before issuance of the certificate of competency.

new text begin(b)new text end All initial certificates of competency shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made. deleted text beginThe commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of certificates of competency from one calendar year to two calendar years. By June 30, 2011,deleted text end

new text begin(c)new text end All renewed certificates of competency shall be valid for two calendar years. deleted text beginThe fee for renewal of the state of Minnesota certificate of competency is $35 for one year or $70 for two years, and is due the day after the certificate expires.deleted text end

new text beginEFFECTIVE DATE.new text end

new text beginThe amendments to paragraphs (a) and (c) are effective July 1, 2015, and expire July 1, 2017.new text end

Sec. 15.

Minnesota Statutes 2014, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

(a) The fee schedule for professional new text beginand amateur new text endlicenses issued by the commissioner is as follows:

In addition to the license fee deleted text beginand the late filing penalty fee in section 341.32, subdivision 2, if applicabledeleted text end, an individual who applies for a deleted text beginprofessionaldeleted text end license deleted text beginon the same day deleted text endnew text beginwithin the 48 hours preceding whennew text end the combative sporting event is held shall pay a late fee of $100 plus the original license fee deleted text beginof $120 at the time the application is submitteddeleted text end.

deleted text begin(b) The fee schedule for amateur licenses issued by the commissioner is as follows:deleted text end

deleted text begin(1) referees, $80 for each initial license and each renewal;deleted text end

deleted text begin(2) promoters, $700 for each initial license and each renewal;deleted text end

deleted text begin(3) judges and knockdown judges, $80 for each initial license and each renewal;deleted text end

deleted text begin(4) trainers, $80 for each initial license and each renewal;deleted text end

deleted text begin(5) ring announcers, $80 for each initial license and each renewal;deleted text end

deleted text begin(6) seconds, $80 for each initial license and each renewal;deleted text end

deleted text begin(7) timekeepers, $80 for each initial license and each renewal;deleted text end

deleted text begin(8) combatant, $60 for each initial license and each renewal;deleted text end

deleted text begin(9) managers, $80 for each initial license and each renewal; anddeleted text end

deleted text begin(10) ringside physicians, $80 for each initial license and each renewal.deleted text end

deleted text begin(c)deleted text endnew text begin (b)new text end The commissioner shall establish a contest fee for each combative sport contestnew text begin and shall consider the size and type of venue when establishing a contest feenew text end. The professional combative sport contest fee is $1,500 per event or not more than four percent of the gross ticket sales, whichever is greater, as determined by the commissioner when the combative sport contest is scheduleddeleted text begin,deleted text endnew text begin.new text end The amateur combative sport contest fee shall be $1,500 or not more than four percent of the gross ticket sales, whichever is greater. deleted text beginThe commissioner shall consider the size and type of venue when establishing a contest fee. The commissioner may establish the maximum number of complimentary tickets allowed for each event by rule.deleted text end

new text begin(c)new text end A professional or amateur combative sport contest fee is nonrefundabledeleted text begin.deleted text endnew text begin and shall be paid as follows:new text end

new text begin(1) $500 at the time the combative sport contest is scheduled; andnew text end

new text begin(2) $1,000 at the weigh-in prior to the contest.new text end

new text beginIf four percent of the gross ticket sales is greater than $1,500, the balance is due to the commissioner within 24 hours of the completed contest.new text end

new text begin(d) The commissioner may establish the maximum number of complimentary tickets allowed for each event by rule.new text end

deleted text begin(d)deleted text endnew text begin (e)new text end All fees and penalties collected by the commissioner must be deposited in the commissioner account in the special revenue fund.

Sec. 16.

Laws 2014, chapter 312, article 2, section 14, is amended to read:

Sec. 14. ASSIGNED RISK TRANSFER.

(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1). This is a onetime transfer.

(b) By June 30, 2015, deleted text beginand each year thereafter,deleted text end if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 deleted text begineach year,deleted text end to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in paragraph (a). deleted text beginThe total amount authorized for all transfers under this paragraph must not exceed $24,100,000. This paragraph expires the day following the transfer in which the total amount transferred under this paragraph to the Minnesota minerals 21st century fund equals $24,100,000.deleted text end

(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a transfer occurs under this paragraph, the amount transferred is appropriated from the general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 15. Both the transfer and appropriation under this paragraph are onetime.

deleted text begin(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a transfer occurs under this paragraph, the amount transferred is appropriated from the general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 15. Both the transfer and appropriation under this paragraph are onetime.deleted text end

ARTICLE 5

COMMERCE

Section 1.

Subd. 6.

Insurance fraud prevention account.

The insurance fraud prevention account is created in the state treasury. Money received from assessments under subdivision 7 new text beginand from the automobile theft prevention account in section 297I.11, subdivision 2, new text endand transferred from the automobile theft prevention account in section 65B.84, subdivision 1, is deposited in the account. Money in this fund is appropriated to the commissioner of commerce for the purposes specified in this section and sections 60A.951 to 60A.956.

Sec. 2.

Minnesota Statutes 2014, section 45.0135, is amended by adding a subdivision to read:

new text beginSubd. 9.new text end

new text beginAdministrative penalty for insurance fraud.new text end

new text begin(a) The commissioner may:new text end

new text begin(1) impose an administrative penalty against any person in an amount as set forth in paragraph (b) for each intentional act of insurance fraud committed by that person; andnew text end

new text begin(2) order restitution to any person suffering loss as a result of the insurance fraud.new text end

new text begin(b) The administrative penalty for each violation described in paragraph (a) may be no more than:new text end

new text begin(1) $20,000 if the funds or the value of the property or services wrongfully obtained exceeds $5,000;new text end

new text begin(2) $10,000 if the funds or value of the property or services wrongfully obtained exceeds $1,000, but not more than $5,000;new text end

new text begin(3) $3,000 if the funds or value of the property or services wrongfully obtained is more than $500, but not more than $1,000; andnew text end

new text begin(4) $1,000 if the funds or value of the property or services wrongfully obtained is less than $500.new text end

new text begin(c) If an administrative penalty is not paid after all rights of appeal have been waived or exhausted, the commissioner may bring a civil action in a court of competent jurisdiction to collect the administrative penalty, including expenses and litigation costs, reasonable attorney fees, and interest.new text end

new text begin(d) This section does not affect a person's right to seek recovery, including expenses and litigation costs, reasonable attorney fees, and interest, against any person that commits insurance fraud.new text end

new text begin(e) For purposes of this subdivision, "insurance fraud" has the meaning given in section 60A.951, subdivision 4.new text end

new text begin(f) Hearings under this subdivision must be conducted in accordance with chapter 14 and any other applicable law.new text end

new text begin(g) All revenues from penalties, expenses, costs, fees, and interest collected under paragraphs (a) to (c) shall be deposited in the insurance fraud prevention account under section 45.0135, subdivision 6.new text end

Sec. 3.

new text begin[59D.01] APPLICATION.new text end

new text begin(a) This chapter does not apply to:new text end

new text begin(1) a policy of insurance offered in compliance with chapters 60A to 79A;new text end

new text begin(2) a debt cancellation or debt suspension contract, including a guaranteed asset protection waiver, being offered by a banking institution or credit union in compliance with chapter 48 or 52; andnew text end

new text begin(3) a debt cancellation or debt suspension contract being offered in compliance with Code of Federal Regulations, title 12, parts 37, 721, or other federal law.new text end

new text begin(b) Guaranteed asset protection waivers regulated under this chapter are not insurance and are not subject to chapters 60A to 79A. Persons selling, soliciting, or negotiating guaranteed asset protection waivers to borrowers in compliance with this chapter are exempt for chapter 60K.new text end

new text begin(c) The commissioner of commerce has the full investigatory authority of chapter 45 to enforce the terms of this chapter.new text end

Sec. 4.

new text begin[59D.02] DEFINITIONS.new text end

new text beginSubdivision 1.new text end

new text beginTerms.new text end

new text beginFor purposes of this chapter, the terms defined in subdivisions 2 to 10 have the meanings given them.new text end

new text beginSubd. 2.new text end

new text beginAdministrator.new text end

new text begin"Administrator" means a person, other than an insurer or creditor who performs administrative or operational functions pursuant to guaranteed asset protection waiver programs.new text end

new text beginSubd. 3.new text end

new text beginBorrower.new text end

new text begin"Borrower" means a debtor, retail buyer, or lessee under a finance agreement.new text end

new text beginSubd. 4.new text end

new text beginCreditor.new text end

new text begin"Creditor" means:new text end

new text begin(1) the lender in a loan or credit transaction;new text end

new text begin(2) the lessor in a lease transaction;new text end

new text begin(3) a dealer or seller of motor vehicles that provides credit to purchasers of the motor vehicles provided that the entities comply with this section;new text end

new text begin(4) the seller in commercial retail installment transactions; or new text end

new text begin(5) the assignees of any of the forgoing to whom the credit obligation is payable.new text end

new text beginSubd. 5.new text end

new text beginFinance agreement.new text end

new text begin"Finance agreement" means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle.new text end

new text beginSubd. 6.new text end

new text beginFree look period.new text end

new text begin"Free look period" means the period of time from the effective date of the GAP waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. This period of time must not be shorter than 30 days.new text end

new text beginSubd. 7.new text end

new text beginGuaranteed asset protection waiver.new text end

new text begin"Guaranteed asset protection waiver" or "GAP waiver" means a contractual agreement wherein a creditor agrees for a separate charge to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle.new text end

new text beginSubd. 8.new text end

new text beginInsurer.new text end

new text begin"Insurer" means an insurance company licensed, registered, or otherwise authorized to do business under Minnesota law.new text end

new text beginSubd. 9.new text end

new text beginMotor vehicle.new text end

new text begin"Motor vehicle" means self-propelled or towed vehicles designed for personal or commercial use, including, but not limited to, automobiles; trucks; motorcycles; recreational vehicles; all-terrain vehicles; snowmobiles; campers; boats; personal watercraft; and motorcycle, boat, camper, and personal watercraft trailers. A creditor is prohibited from selling a GAP waiver in conjunction with the sale or lease of any used motor vehicle that is an automobile or truck that is valued at less than $5,000.new text end

new text beginSubd. 10.new text end

new text beginPerson.new text end

new text begin"Person" includes an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity.new text end

Sec. 5.

new text begin[59D.03] COMMERCIAL TRANSACTIONS EXEMPTED.new text end

new text beginSections 59D.04, subdivision 3, and 59D.06 do not apply to a guaranteed asset protection waiver offered in connection with a lease or retail installment sale associated with any transaction not for personal, family, or household purposes.new text end

Sec. 6.

new text beginSubdivision 1.new text end

new text beginAuthorization.new text end

new text beginGAP waivers may be offered, sold, or provided to borrowers in Minnesota in compliance with this chapter.new text end

new text beginSubd. 2.new text end

new text beginPayment options.new text end

new text beginGAP waivers may, at the option of the creditor, be sold for a single payment or may be offered with a monthly or periodic payment option.new text end

new text beginSubd. 3.new text end

new text beginCertain costs not considered finance charge or interest.new text end

new text beginNotwithstanding any other provision of law, any cost to the borrower for a guaranteed asset protection waiver entered into in compliance with United States Code, title 15, sections 1601 to 1667F, and its implementing regulations under Code of Federal Regulations, title 12, part 226, as they may be amended from time to time, must be separately stated and is not to be considered a finance charge or interest.new text end

new text beginSubd. 4.new text end

new text beginInsurance.new text end

new text beginA retail seller must insure its GAP waiver obligations under a contractual liability or other insurance policy issued by an insurer. A creditor, other than a retail seller, may insure its GAP waiver obligations under a contractual liability policy or other such policy issued by an insurer. The insurance policy may be directly obtained by a creditor or retail seller, or may be procured by an administrator to cover a creditor's or retail seller's obligations. Retail sellers that are lessors on motor vehicles are not required to insure obligations related to GAP waivers on leased vehicles.new text end

new text beginSubd. 5.new text end

new text beginFinancing agreement.new text end

new text beginThe GAP waiver must be part of, or a separate addendum to, the finance agreement and must remain a part of the finance agreement upon the assignment, sale, or transfer of the finance agreement by the creditor.new text end

new text beginSubd. 6.new text end

new text beginPurchase restriction.new text end

new text beginThe extension of credit, the terms of the credit, or the terms and conditions of the related motor vehicle sale or lease must not be conditioned upon the purchase of a GAP waiver.new text end

new text beginSubd. 7.new text end

new text beginReporting.new text end

new text beginA creditor that offers a GAP waiver must report the sale of, and forward funds received on, all such waivers to the designated party, if any, as prescribed in any applicable administrative services agreement, contractual liability policy, other insurance policy, or other specified program documents.new text end

new text beginSubd. 8.new text end

new text beginFiduciary responsibilities.new text end

new text beginFunds received or held by a creditor or administrator and belonging to an insurer, creditor, or administrator, pursuant to the terms of a written agreement, must be held by the creditor or administrator in a fiduciary capacity.new text end

new text beginSubd. 9.new text end

new text beginDefined terms.new text end

new text beginThe terms defined in section 59D.01 are not intended to provide actual terms that are required in guaranteed asset protection waivers.new text end

Sec. 7.

new text begin[59D.05] CONTRACTUAL LIABILITY OR OTHER INSURANCE POLICIES.new text end

new text beginSubdivision 1.new text end

new text beginReimbursement or payment statement.new text end

new text beginContractual liability or other insurance policies insuring GAP waivers must state the obligation of the insurer to reimburse or pay to the creditor any sums the creditor is legally obligated to waive under the GAP waivers issued by the creditor and purchased or held by the borrower.new text end

new text beginSubd. 2.new text end

new text beginCoverage of assignee.new text end

new text beginCoverage under a contractual liability or other insurance policy insuring a GAP waiver must also cover a subsequent assignee upon the assignment, sale, or transfer of the finance agreement.new text end

new text beginSubd. 3.new text end

new text beginTerm.new text end

new text beginCoverage under a contractual liability or other insurance policy insuring a GAP waiver must remain in effect unless canceled or terminated in compliance with applicable laws.new text end

new text beginSubd. 4.new text end

new text beginEffect of cancellation or termination.new text end

new text beginThe cancellation or termination of a contractual liability or other insurance policy must not reduce the insurer's responsibility for GAP waivers issued by the creditor before the date of cancellation or termination and for which a premium has been received by the insurer.new text end

Sec. 8.

new text begin[59D.06] DISCLOSURES.new text end

new text begin(a) Guaranteed asset protection waivers must disclose, as applicable, in writing and in clear, understandable language that is easy to read, the following:new text end

new text begin(1) the name and address of the initial creditor and the borrower at the time of sale, and the identity of any administrator if different from the creditor;new text end

new text begin(2) the purchase price and the terms of the GAP waiver, including without limitation, the requirements for protection, conditions, or exclusions associated with the GAP waiver; new text end

new text begin(3) that the borrower may cancel the GAP waiver within a free look period as specified in the waiver, and will be entitled to a full refund of the purchase price, so long as no benefits have been provided;new text end

new text begin(4) the procedure the borrower must follow, if any, to obtain GAP waiver benefits under the terms and conditions of the waiver, including a telephone number and address where the borrower may apply for waiver benefits;new text end

new text begin(5) whether or not the GAP waiver is cancelable after the free look period and the conditions under which it may be canceled or terminated including the procedures for requesting a refund due; new text end

new text begin(6) that in order to receive a refund due in the event of a borrower's cancellation of the GAP waiver agreement or early termination of the finance agreement after the free look period of the GAP waiver, the borrower, in accordance with the terms of the waiver, must provide a written cancellation request to the creditor, administrator, or other party. If such a request is being made because of the termination of the finance agreement, notice must be provided to the creditor, administrator, or other party within 90 days of the occurrence of the event terminating the finance agreement; new text end

new text begin(7) the methodology for calculating a refund of the unearned purchase price of the GAP waiver due in the event of cancellation of the GAP waiver or early termination of the finance agreement;new text end

new text begin(8) that the extension of credit, the terms of the credit, or the terms and conditions of the related motor vehicle sale or lease are not conditioned upon the purchase of the GAP waiver; andnew text end

new text begin(9) that the extension of credit, the terms of the credit, or the terms and conditions of the related motor vehicle sale or lease are not conditioned upon the purchase of the GAP waiver.new text end

new text begin(b) The creditor or any person offering a GAP waiver must provide the following verbatim disclosure orally and in bold, 14-point type, either in a separate writing or as part of the agreement: "THE GAP WAIVER IS OPTIONAL. YOU DO NOT HAVE TO PURCHASE THIS PRODUCT IN ORDER TO BUY [OR LEASE] THIS MOTOR VEHICLE. YOU ALSO HAVE A LIMITED RIGHT TO CANCEL."new text end

Sec. 9.

new text begin[59D.07] CANCELLATION; REFUNDS.new text end

new text beginSubdivision 1.new text end

new text beginRefund requirements during free look period.new text end

new text begin A GAP waiver must provide that, if a borrower cancels a waiver within the free look period, the borrower will be entitled to a full refund of the purchase price, so long as no benefits have been provided.new text end

new text beginSubd. 2.new text end

new text beginRefund requirements after free-look period.new text end

new text begin(a) Guaranteed asset protection waivers may be cancelable or noncancelable after the free-look period.new text end

new text begin(b) In the event of a borrower's cancellation of the GAP waiver or early termination of the finance agreement, after the agreement has been in effect beyond the free-look period, the borrower may be entitled to a refund of any unearned portion of the purchase price of the waiver unless the waiver provides otherwise. In order to receive a refund, the borrower, in accordance with any applicable terms of the waiver, must provide a written request to the creditor, administrator, or other party. If such a request is being made because of the termination of the finance agreement, notice must be provided to the creditor, administrator, or other party within 90 days of the occurrence of the event terminating the finance agreement.new text end

new text begin(c) If the cancellation of a GAP waiver occurs as a result of a default under the finance agreement or the repossession of the motor vehicle associated with the finance agreement, or any other termination of the finance agreement, any refund due may be paid directly to the creditor or administrator and applied as set forth in subdivision 3.new text end

new text beginSubd. 3.new text end

new text beginHow applied.new text end

new text beginA refund under subdivision 1 or 2 may be applied by the creditor as a reduction of the amount owed under the finance agreement, unless the borrower can show that the finance agreement has been paid in full.new text end

Sec. 10.

Minnesota Statutes 2014, section 65B.44, is amended by adding a subdivision to read:

new text beginSubd. 2a.new text end

new text beginPerson convicted of insurance fraud.new text end

new text begin(a) A person convicted of insurance fraud under section 609.611 in a case related to this chapter or of employment of runners under section 609.612 may not enforce a contract for payment of services eligible for reimbursement under subdivision 2 against an insured or reparation obligor.new text end

new text begin(b) After a period of five years from the date of conviction, a person described in paragraph (a) may apply to district court to extinguish the collateral sanction set forth in paragraph (a), which the court may grant in its reasonable discretion.new text end

Sec. 11.

Subdivision 1.

Program described; commissioner's duties; appropriation.

(a) The commissioner of commerce shall:

(1) develop and sponsor the implementation of statewide plans, programs, and strategies to combat automobile theft, improve the administration of the automobile theft laws, and provide a forum for identification of critical problems for those persons dealing with automobile theft;

(2) coordinate the development, adoption, and implementation of plans, programs, and strategies relating to interagency and intergovernmental cooperation with respect to automobile theft enforcement;

(3) annually audit the plans and programs that have been funded in whole or in part to evaluate the effectiveness of the plans and programs and withdraw funding should the commissioner determine that a plan or program is ineffective or is no longer in need of further financial support from the fund;

(4) develop a plan of operation including:

(i) an assessment of the scope of the problem of automobile theft, including areas of the state where the problem is greatest;

(ii) an analysis of various methods of combating the problem of automobile theft;

(iii) a plan for providing financial support to combat automobile theft;

(iv) a plan for eliminating car hijacking; and

(v) an estimate of the funds required to implement the plan; and

(5) distribute money, in consultation with the commissioner of public safety, pursuant to subdivision 3 from the automobile theft prevention special revenue account for automobile theft prevention activities, including:

(i) paying the administrative costs of the program;

(ii) providing financial support to the State Patrol and local law enforcement agencies for automobile theft enforcement teams;

(iii) providing financial support to state or local law enforcement agencies for programs designed to reduce the incidence of automobile theft and for improved equipment and techniques for responding to automobile thefts;

(iv) providing financial support to local prosecutors for programs designed to reduce the incidence of automobile theft;

(v) providing financial support to judicial agencies for programs designed to reduce the incidence of automobile theft;

(vi) providing financial support for neighborhood or community organizations or business organizations for programs designed to reduce the incidence of automobile theft and to educate people about the common methods of automobile theft, the models of automobiles most likely to be stolen, and the times and places automobile theft is most likely to occur; and

(vii) providing financial support for automobile theft educational and training programs for state and local law enforcement officials, driver and vehicle services exam and inspections staff, and members of the judiciary.

(b) The commissioner may not spend in any fiscal year more than ten percent of the money in the fund for the program's administrative and operating costs. The commissioner is annually appropriated and must distribute the amount of the proceeds credited to the automobile theft prevention special revenue account each year, less the transfer of $1,300,000 each year to the deleted text begingeneral funddeleted text endnew text begin insurance fraud prevention account new text enddescribed in section 297I.11, subdivision 2.

(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances in the auto theft prevention account to the insurance fraud prevention account under section 45.0135, subdivision 6.

Sec. 12.

new text begin[80A.461] MNVEST REGISTRATION EXEMPTION.new text end

new text beginSubdivision 1.new text end

new text beginDefinitions.new text end

new text begin(a) For purposes of this section, the terms defined in paragraphs (b) through (e) have the meanings given them.new text end

new text begin(b) "MNvest issuer" means an entity organized under the laws of Minnesota, other than a general partnership, that satisfies the requirements of Code of Federal Regulations, title 17, part 230.147, and the following requirements:new text end

new text begin(1) the principal office of the entity is located in Minnesota;new text end

new text begin(2) as of the last day of the most recent semiannual fiscal period of the entity, at least 80 percent, or other threshold permitted by Code of Federal Regulations, title 17, part 230.147, of the entity's assets were located in Minnesota;new text end

new text begin(3) except in the case of an entity whose gross revenue during the most recent period of 12 full months did not exceed $5,000, the entity derived at least 80 percent, or other threshold permitted by Code of Federal Regulations, title 17, part 230.147, of the entity's gross revenues from the operation of a business in Minnesota during (i) the previous fiscal year, if the MNvest offering begins during the first six months of the entity's fiscal year; or (ii) during the 12 months ending on the last day of the sixth month of the entity's current fiscal year, if the MNvest offering begins following the last day;new text end

new text begin(4) the entity does not attempt to limit its liability, or the liability of any other person, for fraud or intentional misrepresentation in connection with the offering of its securities in a MNvest offering; andnew text end

new text begin(5) the entity is not:new text end

new text begin(i) engaged in the business of investing, reinvesting, owning, holding, or trading in securities, except that the entity may hold securities of one class in an entity that is not itself engaged in the business of investing, reinvesting, owning, holding, or trading in securities; ornew text end

new text begin(ii) subject to the reporting requirements of the Securities and Exchange Act of 1934, section 13 or section 15(d), United States Code, title 15, section 78m and section 78o(d).new text end

new text begin(c) "MNvest offering" means an offer, or an offer and sale, of securities by a MNvest issuer that: (1) is conducted exclusively through a MNvest portal and (2) satisfies the requirements of this section and other requirements the administrator imposes by rule.new text end

new text begin(d) "MNvest portal" means an Internet Web site that is operated by a portal operator for the offer or sale of MNvest offerings under this section or registered securities under section 80A.50, paragraph (b), and satisfies the requirements of subdivision 6.new text end

new text begin(e) "Portal operator" means an entity, including an issuer, that:new text end

new text begin(1) is authorized to do business in Minnesota;new text end

new text begin(2) is a broker-dealer registered under this chapter or otherwise registers with the administrator as a portal operator in accordance with subdivision 7, paragraph (a), and is therefore excluded from broker-dealer registration; andnew text end

new text begin(3) satisfies such other conditions as the administrator may determine.new text end

new text beginSubd. 2.new text end

new text beginGenerally.new text end

new text beginThe offer, sale, and issuance of securities in a MNvest offering is exempt from the requirements of sections 80A.49 to 80A.54, except section 80A.50, paragraph (a), clause (3), and section 80A.71, if the issuer meets the qualifications under this section.new text end

new text beginSubd. 3.new text end

new text beginMNvest offering.new text end

new text begin(a) A MNvest offering must satisfy the following requirements:new text end

new text begin(1) the issuer must be a MNvest issuer on the date that its securities are first offered for sale in the offering and continuously through the closing of the offering;new text end

new text begin(2) the offering must meet the requirements of the federal exemption for intrastate offerings in section 3(a)(11) of the Securities Act of 1933, United States Code, title 15, section 77c (a)(11), and Rule 147 adopted under the Securities Act of 1933, Code of Federal Regulations, title 17, part 230.147;new text end

new text begin(3) the sale of securities must be conducted exclusively through a MNvest portal;new text end

new text begin(4) the MNvest issuer shall require the portal operator to provide or make available to prospective purchasers through the MNvest portal a copy of the MNvest issuer's balance sheet and income statement for the MNvest issuer's most recent fiscal year, if the issuer was in existence. For offerings beginning more than 90 days after the issuer's most recent fiscal year end, or if the MNvest issuer was not in existence the previous calendar year, the MNvest issuer must provide or make available a balance sheet as of a date not more than 90 days before the commencement of the MNvest offering for the MNvest issuer's most recently completed fiscal year, or such shorter portion the MNvest issuer was in existence during that period, and the year-to-date period, or inception-to-date period, if shorter, corresponding with the more recent balance sheet required by this clause;new text end

new text begin(5) in any 12-month period, the MNvest issuer shall not raise more than the aggregate amounts set forth in item (i) or (ii), either in cash or other consideration, in connection with one or more MNvest offerings:new text end

new text begin(i) $5,000,000 if the financial statements described in clause (4) have been:new text end

new text begin(A) audited by a certified public accountant firm licensed under chapter 326A using auditing standards issued by either the American Institute of Certified Public Accountants or the Public Company Oversight Board; ornew text end

new text begin(B) reviewed by a certified public accountant firm licensed under chapter 326A using the Statements on Standards for Accounting and Review Services issued by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants; ornew text end

new text begin(ii) $2,000,000 if the financial statements described in clause (4) have not been audited or reviewed as described in item (i);new text end

new text begin(6) the MNvest issuer must use at least 80 percent of the net proceeds of the offering in connection with the operation of its business within Minnesota;new text end

new text begin(7) no single purchaser may purchase more than $10,000 in securities of the MNvest issuer under this exemption in connection with a single MNvest offering unless the purchaser is an accredited investor;new text end

new text begin(8) all payments for the purchase of securities must be held in escrow until the aggregate capital deposited into escrow from all purchasers is equal to or greater than the stated minimum offering amount. Purchasers will receive a return of all their subscription funds if the minimum offering amount is not raised by the stipulated expiration date required in subdivision 4, clause (2). The escrow agent must be a bank, regulated trust company, savings bank, savings association, or credit union authorized to do business in Minnesota. Prior to the execution of the escrow agreement between the issuer and the escrow agent, the escrow agent must conduct searches of the issuer, its executive officers, directors, governors, and managers, as provided to the escrow agent by the portal operator, against the Specially Designated Nationals list maintained by the Office of Foreign Assets Control. The escrow agent is only responsible to act at the direction of the party establishing the escrow account and does not have a duty or liability, contractual or otherwise, to an investor or other person except as set forth in the applicable escrow agreement or other contract;new text end

new text begin(9) the MNvest issuer shall require the portal operator to make available to the prospective purchaser through the MNvest portal a disclosure document that meets the requirements set forth in subdivision 4;new text end

new text begin(10) before selling securities to a prospective purchaser on a MNvest portal, the MNvest issuer shall require the portal operator to obtain from the prospective purchaser the certification required under subdivision 5;new text end

new text begin(11) not less than ten days before the beginning of an offering of securities in reliance on the exemption under this section, the MNvest issuer shall provide the following to the administrator:new text end

new text begin(i) a notice of claim of exemption from registration, specifying that the MNvest issuer will be conducting an offering in reliance on the exemption under this section;new text end

new text begin(ii) a copy of the disclosure document to be provided to prospective purchasers in connection with the offering, as described in subdivision 4; andnew text end

new text begin(iii) a filing fee of $300; andnew text end

new text begin(12) the MNvest issuer and the portal operator may engage in solicitation and advertising of the MNvest offering provided that:new text end

new text begin(i) the advertisement contains disclaiming language which clearly states:new text end

new text begin(A) the advertisement is not the offer and is for informational purposes only;new text end

new text begin(B) the offering is being made in reliance on the exemption under this section;new text end

new text begin(C) the offering is directed only to residents of the state;new text end

new text begin(D) all offers and sales are made through a MNvest portal; andnew text end

new text begin(E) the Department of Commerce is the securities regulator in Minnesota;new text end

new text begin(ii) along with the disclosures required under item (i), the advertisement may contain no more than the following information:new text end

new text begin(A) the name and contact information of the MNvest issuer;new text end

new text begin(B) a brief description of the general type of business of the MNvest issuer;new text end

new text begin(C) the minimum offering amount the MNvest issuer is attempting to raise through its offering;new text end

new text begin(D) a description of how the issuer will use the funds raised through the MNvest offering;new text end

new text begin(E) the duration that the MNvest offering will remain open;new text end

new text begin(F) the MNvest issuer's logo; andnew text end

new text begin(G) a link to the MNvest issuer's Web site and the MNvest portal in which the MNvest offering is being made;new text end

new text begin(iii) the advertisement complies with all applicable state and federal laws.new text end

new text beginSubd. 4.new text end

new text beginThe MNvest issuer shall require the portal operator to make available to the prospective purchaser through the MNvest portal a printable or downloadable disclosure document containing the following:new text end

new text begin(1) the MNvest issuer's type of entity, the address and telephone number of its principal office, its formation history for the previous five years, a summary of the material facts of its business plan and its capital structure, and its intended use of the offering proceeds, including any amounts to be paid from the proceeds of the MNvest offering, as compensation or otherwise, to an owner, executive officer, director, governor, manager, member, or other person occupying a similar status or performing similar functions on behalf of the MNvest issuer;new text end

new text begin(2) the MNvest offering must stipulate the date on which the offering will expire, which must not be longer than 12 months from the date the MNvest offering commenced;new text end

new text begin(3) a copy of the escrow agreement between the escrow agent, the MNvest issuer, and, if applicable, the portal operator, as described in subdivision 3, clause (8);new text end

new text begin(5) the identity of all persons owning more than ten percent of any class of equity interests in the company;new text end

new text begin(6) the identity of the executive officers, directors, governors, managers, members, and other persons occupying a similar status or performing similar functions in the name of and on the behalf of the MNvest issuer, including their titles and their relevant experience;new text end

new text begin(7) the terms and conditions of the securities being offered, a description of investor exit strategies, and of any outstanding securities of the MNvest issuer; the minimum and maximum amount of securities being offered; either the percentage economic ownership of the MNvest issuer represented by the offered securities, assuming the minimum and, if applicable, maximum number of securities being offered is sold, or the valuation of the MNvest issuer implied by the price of the offered securities; the price per share, unit, or interest of the securities being offered; any restrictions on transfer of the securities being offered; and a disclosure that any future issuance of securities might dilute the value of securities being offered;new text end

new text begin(8) the identity of and consideration payable to a person who has been or will be retained by the MNvest issuer to assist the MNvest issuer in conducting the offering and sale of the securities, including a portal operator, but excluding (i) persons acting primarily as accountants or attorneys, and (ii) employees whose primary job responsibilities involve operating the business of the MNvest issuer rather than assisting the MNvest issuer in raising capital;new text end

new text begin(9) a description of any pending material litigation, legal proceedings, or regulatory action involving the MNvest issuer or any executive officers, directors, governors, managers, members, and other persons occupying a similar status or performing similar functions in the name of and on behalf of the MNvest issuer;new text end

new text begin(10) a statement of the material risks unique to the MNvest issuer and its business plans;new text end

new text begin(11) a statement that the securities have not been registered under federal or state securities law and that the securities are subject to limitations on resale; andnew text end

new text begin(12) the following legend must be displayed conspicuously in the disclosure document:new text end

new text begin"IN MAKING AN INVESTMENT DECISION, PURCHASERS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR DIVISION OR OTHER REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY SUBSECTION (e) OF SEC RULE 147 (CODE OF FEDERAL REGULATIONS, TITLE 17, PART 230.147 (e)) AS PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. PURCHASERS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME."new text end

new text beginSubd. 5.new text end

new text beginRequired certification from MNvest offering purchasers.new text end

new text beginBefore selling securities to a prospective purchaser through a MNvest portal, the MNvest issuer shall require the portal operator to obtain from the prospective purchaser through the applicable MNvest portal a written or electronic certification that includes, at a minimum, the following statements:new text end

new text begin"I UNDERSTAND AND ACKNOWLEDGE THAT:new text end

new text beginIf I make an investment in an offering through this MNvest portal, it is very likely that I am investing in a high-risk, speculative business venture that could result in the complete loss of my investment, and I need to be able to afford such a loss.new text end

new text beginThis offering has not been reviewed or approved by any state or federal securities commission or division or other regulatory authority and that no such person or authority has confirmed the accuracy or determined the adequacy of any disclosure made to me relating to this offering.new text end

new text beginIf I make an investment in an offering through this MNvest portal, it is very likely that the investment will be difficult to transfer or sell and, accordingly, I may be required to hold the investment indefinitely.new text end

new text beginBy entering into this transaction with the company, I am affirmatively representing myself as being a Minnesota resident at the time that this contract is formed, and if this representation is subsequently shown to be false, the contract is void."new text end

new text beginSubd. 6.new text end

new text beginMNvest portal.new text end

new text beginA MNvest portal must satisfy the requirements of clauses (1) through (4):new text end

new text begin(1) the Web site does not contain the word "MNvest" in its URL address;new text end

new text begin(2) the Web site implements steps to limit Web site access to the offer or sale of securities to only Minnesota residents when conducting MNvest offerings;new text end

new text begin(3) MNvest offerings may not be viewed on the MNvest portal by a prospective purchaser until:new text end

new text begin(i) the portal operator verifies, through its exercise of reasonable steps, such as using a third-party verification service or as otherwise approved by the administrator, that the prospective purchaser is a Minnesota resident; andnew text end

new text begin(ii) the prospective purchaser makes an affirmative acknowledgment, electronically through the MNvest portal, that:new text end

new text begin(A) I am a Minnesota resident;new text end

new text begin(B) the securities and investment opportunities listed on this Web site involve high-risk, speculative business ventures. If I choose to invest in any securities or investment opportunity listed on this Web site, I may lose all of my investment, and I can afford such a loss;new text end

new text begin(C) the securities and investment opportunities listed on this Web site have not been reviewed or approved by any state or federal securities commission or division or other regulatory authority, and no such person or authority, including this Web site, has confirmed the accuracy or determined the adequacy of any disclosure made to prospective investors relating to any offering; andnew text end

new text begin(D) if I choose to invest in any securities or investment opportunity listed on this Web site, I understand that the securities I will acquire may be difficult to transfer or sell, that there is no ready market for the sale of such securities, that it may be difficult or impossible for me to sell or otherwise dispose of this investment at any price, and that, accordingly, I may be required to hold this investment indefinitely; andnew text end

new text begin(4) the Web site complies with all other rules adopted by the administrator.new text end

new text beginSubd. 7.new text end

new text beginPortal operator.new text end

new text begin(a) An entity, other than a registered broker-dealer, wishing to become a portal operator shall file with the administrator:new text end

new text begin(1) form ....... [to be approved by the administrator], including all applicable schedules and supplemental information;new text end

new text begin(2) a copy of the articles of incorporation or other documents that indicate the entity's form of organization; andnew text end

new text begin(3) a filing fee of $200.new text end

new text begin(b) A portal operator's registration expires 12 months from the date the administrator has approved the entity as a portal operator, and subsequent registration for the succeeding 12-month period shall be issued upon written application and upon payment of a renewal fee of $200, without filing of further statements or furnishing any further information, unless specifically requested by the administrator. This section is not applicable to a registered broker-dealer functioning as a portal operator.new text end

new text begin(c) A portal operator that is not a broker-dealer registered under this chapter shall not:new text end

new text begin(1) offer investment advice or recommendations, provided that a portal operator shall not be deemed to be offering investment advice or recommendations merely because it (i) selects, or may perform due diligence with respect to, issuers or offerings to be listed, or (ii) provides general investor educational materials;new text end

new text begin(2) provide transaction-based compensation for securities sold under this chapter to employees, agents, or other persons unless the employees, agents, or other persons are registered with the administrator and permitted to receive such compensation;new text end

new text begin(3) charge a fee to the issuer for an offering of securities on a MNvest portal unless the fee is (i) a fixed amount for each offering, (ii) a variable amount based on the length of time that the securities are offered on the MNvest portal, or (iii) a combination of such fixed and variable amounts; ornew text end

new text begin(4) hold, manage, possess, or otherwise handle purchaser funds or securities. This restriction does not apply if the issuer is the portal operator.new text end

new text begin(d) A portal operator shall provide the administrator with read-only access to administrative sections of the MNvest portal.new text end

new text begin(e) A portal operator shall comply with the record-keeping requirements of this paragraph, provided that the failure of a portal operator that is not an issuer to maintain records in compliance with this paragraph shall not affect the MNvest issuer's exemption from registration afforded by this section:new text end

new text begin(1) a portal operator shall maintain and preserve, for a period of five years from either the date of the closing or termination of the securities offering, the following records:new text end

new text begin(i) the name of each issuer whose securities have been listed on its MNvest portal;new text end

new text begin(ii) the full name, residential address, Social Security number, date of birth, and copy of a state-issued identification for all owners with greater than ten percent voting equity in an issuer;new text end

new text begin(iii) copies of all offering materials that have been displayed on its MNvest portal;new text end

new text begin(iv) the names and other personal information of each purchaser who has registered at its MNvest portal;new text end

new text begin(v) any agreements and contracts between the portal operator and the issuer; andnew text end

new text begin(vi) any information used to establish that a MNvest issuer, prospective MNvest purchaser, or MNvest purchaser is a Minnesota resident;new text end

new text begin(2) a portal operator shall, upon written request of the administrator, furnish to the administrator any records required to be maintained and preserved under this subdivision;new text end

new text begin(3) the records required to be kept and preserved under this subdivision must be maintained in a manner, including by any electronic storage media, that will permit the immediate location of any particular document so long as such records are available for immediate and complete access by representatives of the administrator. Any electronic storage system must preserve the records exclusively in a nonrewriteable, nonerasable format; verify automatically the quality and accuracy of the storage media recording process; serialize the original and, if applicable, duplicate units storage media, and time-date for the required period of retention the information placed on such electronic storage media; and be able to download indexes and records preserved on electronic storage media to an acceptable medium. In the event that a records retention system commingles records required to be kept under this subdivision with records not required to be kept, representatives of the administrator may review all commingled records; andnew text end

new text begin(4) a portal operator shall maintain such other records as the administrator shall determine by rule.new text end

new text beginSubd. 8.new text end

new text beginPortal operator; privacy of purchaser information.new text end

new text begin(a) For purposes of this subdivision, "personal information" means information provided to a portal operator by a prospective purchaser or purchaser that identifies, or can be used to identify, the prospective purchaser or purchaser.new text end

new text begin(b) Except as provided in paragraph (c), a portal operator must not disclose personal information without written or electronic consent from the prospective purchaser or purchaser that authorizes the disclosure.new text end

new text begin(c) Paragraph (b) does not apply to:new text end

new text begin(1) records required to be provided to the administrator under subdivision 7, paragraph (e);new text end

new text begin(2) the disclosure of personal information to a MNvest issuer relating to its MNvest offering; ornew text end

new text begin(3) the disclosure of personal information to the extent required or authorized under other law.new text end

new text beginSubd. 9.new text end

new text beginBad actor disqualification.new text end

new text begin(a) An exemption under this section is not available for a sale if securities in the MNvest issuer; any predecessor of the MNvest issuer; any affiliated issuer; any director, executive officer, other officer participating in the MNvest offering, general partner, or managing member of the MNvest issuer; any beneficial owner of 20 percent or more of the MNvest issuer's outstanding voting equity securities, calculated on the basis of voting power; any promoter connected with the MNvest issuer in any capacity at the time of the sale; any investment manager of an issuer that is a pooled investment fund; any general partner or managing member of any investment manager; or any director, executive officer, or other officer participating in the offering of any investment manager or general partner or managing member of the investment manager:new text end

new text begin(1) has been convicted, within ten years before the offering, or five years, in the case of MNvest issuers, their predecessors, and affiliated issuers, of any felony or misdemeanor:new text end

new text begin(i) in connection with the purchase or sale of any security;new text end

new text begin(ii) involving the making of any false filing with the Securities and Exchange Commission or a state agency; ornew text end

new text begin(iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;new text end

new text begin(2) is subject to any order, judgment, or decree of any court of competent jurisdiction, entered within five years before the sale, that, at the time of the sale, restrains or enjoins the person from engaging or continuing to engage in any conduct or practice:new text end

new text begin(i) in connection with the purchase or sale of any security;new text end

new text begin(ii) involving the making of any false filing with the Securities and Exchange Commission; ornew text end

new text begin(iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;new text end

new text begin(3) is subject to a final order of a state securities commission or an agency or officer of a state performing like functions; a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission or an agency or officer of a state performing like functions; an appropriate federal banking agency; the United States Commodity Futures Trading Commission; or the National Credit Union Administration that:new text end

new text begin(i) at the time of the offering, bars the person from:new text end

new text begin(A) association with an entity regulated by the commission, authority, agency, or officer;new text end

new text begin(B) engaging in the business of securities, insurance, or banking; ornew text end

new text begin(ii) constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct entered within ten years before the offering;new text end

new text begin(4) is subject to an order of the Securities and Exchange Commission entered pursuant to section 15(b) or 15B(c) of the Securities Exchange Act of 1934, United States Code, title 15, section 78 o(b) or 78o-4(c) or section 203(e) or (f) of the Investment Advisers Act of 1940, United States Code, title 15, section 80b-3(e) or (f) that, at the time of the offering:new text end

new text begin(i) suspends or revokes the person's registration as a broker, dealer, municipal securities dealer, or investment adviser;new text end

new text begin(ii) places limitations on the activities, functions, or operations of the person; ornew text end

new text begin(iii) bars the person from being associated with any entity or from participating in the offering of any penny stock;new text end

new text begin(5) is subject to any order of the Securities and Exchange Commission entered within five years before the sale that, at the time of the sale, orders the person to cease and desist from committing or causing a violation or future violation of:new text end

new text begin(i) any scienter-based antifraud provision of the federal securities laws, including without limitation section 17(a)(1) of the Securities Act of 1933, United States Code, title 15, section 77q(a)(1), section 10(b) of the Securities Exchange Act of 1934, United States Code, title 15, section 78j(b) and Code of Federal Regulations, title 17, section 240.10b-5, section 15(c)(1) of the Securities Exchange Act of 1934, United States Code, title 15, section 78o(c)(1) and section 206(1) of the Investment Advisers Act of 1940, United States Code, title 15, section 80b-6(1), or any other rule or regulation thereunder; ornew text end

new text begin(ii) section 5 of the Securities Act of 1933, United States Code, title 15, section 77e;new text end

new text begin(6) is suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade;new text end

new text begin(7) has filed as a registrant or issuer, or was named as an underwriter in, any registrations statement or Regulation A offering statement filed with the Securities and Exchange Commission that, within five years before the sale, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is, at the time of the sale, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued; ornew text end

new text begin(8) is subject to a United States Postal Service false representation order entered within five years before the offering, or is, at the time of the offering, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations.new text end

new text begin(b) Paragraph (a) does not apply:new text end

new text begin(1) with respect to any conviction, order, judgment, decree, suspension, expulsion, or bar that occurred or was issued before September 23, 2013;new text end

new text begin(2) upon a showing of good cause and without prejudice to any other action by the Securities and Exchange Commission, if the Securities and Exchange Commission determines that it is not necessary under the circumstances that an exemption be denied;new text end

new text begin(3) if, before the relevant offering, the court of regulatory authority that entered the relevant order, judgment, or decree advises in writing, whether contained in the relevant judgment, order, or decree or separately to the Securities and Exchange Commission or its staff, that disqualification under paragraph (a) should not arise as a consequence of the order, judgment, or decree; ornew text end

new text begin(4) if the MNvest issuer establishes that it did not know and, in the exercise of reasonable care, could not have known that a disqualification existed under paragraph (a).new text end

new text begin(c) For purposes of paragraph (a), events relating to any affiliated issuer that occurred before the affiliation arose will not be considered disqualifying if the affiliated entity is not:new text end

new text begin(1) in control of the issuer; ornew text end

new text begin(2) under common control with the issuer by a third party that was in control of the affiliated entity at the time of the events.new text end

Sec. 13.

Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision to read:

new text beginSubd. 9.new text end

new text beginVoice over Internet Protocol service.new text end

new text begin"Voice over Internet Protocol service" or "VoIP service" means any service that (1) enables real-time two-way voice communications that originate from or terminate at the user's location in Internet protocol or any successor protocol, and (2) permits users generally to receive calls that originate on the public switched telephone network and terminate calls to the public switched telephone network.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 14.

Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision to read:

new text beginSubd. 10.new text end

new text beginInternet Protocol-enabled service.new text end

new text begin"Internet Protocol-enabled service" or "IP-enabled service" means any service, capability, functionality, or application provided using Internet protocol, or any successor protocol, that enables an end user to send or receive a communication in Internet protocol format or any successor format, regardless of whether that communication is voice, data, or video.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 15.

new text begin[237.037] VOICE OVER INTERNET PROTOCOL SERVICE AND INTERNET PROTOCOL-ENABLED SERVICE.new text end

new text beginSubdivision 1.new text end

new text beginRegulation prohibited.new text end

new text beginExcept as provided in this section, no state agency, including the commission and the Department of Commerce, or political subdivision of this state shall by rule, order, or other means directly or indirectly regulate the entry, rates, terms, quality of service, availability, classification, or any other aspect of VoIP service or IP-enabled service.new text end

new text beginSubd. 2.new text end

new text beginVoIP regulation.new text end

new text begin(a) To the extent permitted by federal law, VoIP service is subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard to the collection and remittance of the surcharges governed by those sections.new text end

new text begin(b) A provider of VoIP service must comply with the requirements of chapter 403 applicable to the provision of access to 911 service by service providers, except to the extent those requirements conflict with federal requirements for the provision of 911 service by VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP provider is entitled to the benefit of the limitation of liability provisions of section 403.07, subdivision 5. Beginning June 1, 2015, and continuing each June 1 thereafter, each VoIP provider shall file a plan with the commission describing how it will comply with the requirements of this paragraph. After its initial filing under this paragraph, a VoIP provider shall file with the commission either an update of the plan or a statement certifying that the plan and personnel contact information previously filed is still current.new text end

new text beginSubd. 3.new text end

new text beginRelation to other law.new text end

new text beginNothing in this section restricts, creates, expands, or otherwise affects or modifies:new text end

new text begin(1) the commission's authority under the Federal Communications Act of 1934, United States Code, title 47, sections 251 and 252;new text end

new text begin(2) any applicable wholesale tariff or any commission authority related to wholesale services;new text end

new text begin(3) any commission jurisdiction over (i) intrastate switched access rates, terms, and conditions, including the implementation of federal law with respect to intercarrier compensation, or (ii) existing commission authority to address or affect the resolution of disputes regarding intercarrier compensation;new text end

new text begin(4) the rights of any entity, or the authority of the commission and local government authorities, with respect to the use and regulation of public rights-of-way under sections 237.162 and 237.163; ornew text end

new text begin(5) the establishment or enforcement of standards, requirements or procedures in procurement policies, internal operational policies, or work rules of any state agency or political subdivision of the state relating to the protection of intellectual property.new text end

new text beginSubd. 4.new text end

new text beginExemption.new text end

new text beginThe following services delivered by IP-enabled service are not regulated under this chapter:new text end

new text beginEFFECTIVE DATE.new text end

Sec. 16.

Subd. 2.

Automobile theft prevention account.

A special revenue account in the state treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to the deleted text begingeneral funddeleted text endnew text begin insurance fraud prevention account under section 45.0135, subdivision 6new text end. Revenues in excess of $1,300,000 each year may be used only for the automobile theft prevention program described in section 65B.84.

Sec. 17.

Subdivision 1.

Commissioner's duty.

new text begin(a) new text endWithin the calendar year next following the year in which abandoned property has been paid or delivered to the commissioner, the commissioner shall provide public notice of the abandoned property in the manner new text begindescribed in subdivision 1a, new text endand deleted text beginfrequencydeleted text endnew text begin otherwise asnew text end the commissioner determines to be most effective and efficient in communicating to the persons appearing to be owners of this property. deleted text beginPublic notice may include the use of print, broadcast, or electronic media. deleted text endThe commissioner shall, at a minimum, expend 15 percent of the funds allocated by the legislature to the operations of the unclaimed property division, to comply with the public notice requirements of this deleted text beginsubdivisiondeleted text endnew text begin section, and shall report to the legislature annually on how those funds are expendednew text end.

Sec. 18.

Minnesota Statutes 2014, section 345.42, is amended by adding a subdivision to read:

new text beginSubd. 1a.new text end

new text beginPublic notice.new text end

new text begin(a) Public notice provided by the commissioner shall include the following:new text end

new text begin(1) posting on the Department of Commerce's Web site a list of all persons appearing to be owners of abandoned property. The list shall be arranged in alphabetical order by the last name of the person, and further organized by county. The list of persons must be updated at least three times per year and must remain on the Department of Commerce's Web site at all times;new text end

new text begin(2) publication in a qualified newspaper a list of persons appearing to be owners of abandoned property having a value of $500 or more. The list shall be published in the largest circulation qualified newspaper in each county, and shall include the names of all persons whose last known address is within the county. The list must be published at least once per year. The commissioner may stagger publication of the entire list of owners by publishing a partial list at least twice, but no more than three times per year. Each qualified newspaper that publishes the list shall, at no additional charge to the commissioner, also post the list on its Web site or on a central Web site that can be accessed directly from the qualified newspaper's Web site. The list must be accessible on the Web site for not less than 180 days, and at no cost to the public. The qualified newspaper must include in its publication of the list a reference to its Web site or a central Web site; andnew text end

new text begin(3) dissemination of information to persons appearing to be owners of abandoned property through other means and media, including broadcast media, the Internet, and social media.new text end

new text begin(b) Beginning July 1, 2016, and annually thereafter, the commissioner shall provide to each member of the legislature a list of all persons appearing to be owners of abandoned property whose last known address is located in the legislator's respective legislative district.new text end

Sec. 19.

new text begin[609.613] ACCIDENT VICTIM SOLICITATION.new text end

new text begin(a) A person who contacts an individual to offer professional or commercial services with knowledge that the individual has been involved in a motor vehicle accident must not:new text end

new text begin(2) offer, directly or indirectly, any inducement to use the professional or commercial services, including but not limited to the provision of any free service, cash, gift cards, cash equivalents, promotional items, entry into a sweepstakes, or any other thing of value.new text end

new text begin(b) The disclosure by a licensed attorney that legal representation may be undertaken on a contingency fee basis does not constitute an inducement to use the professional or commercial services under this section.new text end

Sec. 20. new text beginUSE OF VENDOR TO FACILITATE RETURN OF ABANDONED PROPERTY.new text end

new text beginThe commissioner shall, using a request for proposal process, contract with a vendor who will facilitate the return of abandoned property to owners. As consideration for such services the vendor shall receive up to seven percent of the value of the abandoned property, not to exceed $500,000, when such abandoned property is returned to its owner. This consideration shall not be paid from the abandoned property itself. A vendor may not assess any fees, charges, or costs to the owner of the abandoned property.new text end

new text beginThe commissioner shall report by February 15, 2016, to the chairs and ranking minority members of the standing committees of the house of representatives and senate having jurisdiction over commerce issues, regarding the process owners of abandoned property must comply with in order to file an allowed claim under Minnesota Statutes, chapter 345, and the effectiveness of the vendor used by the commissioner to facilitate the return of the abandoned property. The report shall include:new text end

new text begin(1) information regarding the documentation and identification necessary for owners of each type of abandoned property under Minnesota Statutes, chapter 345, to file an allowed claim; andnew text end

new text begin(2) a review of the methods and effectiveness of the vendor in returning abandoned property under Minnesota Statutes, chapter 345, to the owner.new text end

ARTICLE 6

UNEMPLOYMENT INSURANCE

Section 1.

Subd. 6.

Benefit year.

"Benefit year" means the period of 52 calendar weeks beginning the date a benefit account is effective. For a benefit account established effective any January 1, April 1, July 1,new text begin ornew text end October 1, deleted text beginor January 2, 2000, or October 2, 2011,deleted text end the benefit year will be a period of 53 calendar weeks.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 2, 2015.new text end

Sec. 2.

Subd. 21b.

Preponderance of the evidence.

"Preponderance of the evidence" means evidence in deleted text beginsubstantiationdeleted text endnew text begin supportnew text end of a fact thatdeleted text begin, when weighed against the evidence opposing the fact,deleted text end is more convincing and has a greater probability of truthnew text begin than the evidence opposing the factnew text end.

Sec. 4.

Subd. 30.

Wages paid.

new text begin(1)new text end that have been actually paidnew text begin;new text end or

new text begin(2)new text end that have been credited to or set apart so that payment and disposition is under the control of the employee.

new text begin(b)new text end Wage payments delayed beyond the regularly scheduled pay date are considered "wages paid" on the missed pay date. Back pay is considered "wages paid" on the date of actual payment. Any wages earned but not paid with no scheduled date of payment is considered "wages paid" on the last day of employment.

deleted text begin(b)deleted text endnew text begin (c)new text end Wages paid does not include wages earned but not paid except as provided for in this subdivision.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 2, 2015.new text end

Sec. 5.

Minnesota Statutes 2014, section 268.051, is amended by adding a subdivision to read:

new text beginSubd. 2a.new text end

new text beginUnemployment insurance tax reduction.new text end

new text begin(a) If the balance in the trust fund on December 31 of any calendar year exceeds the average high cost multiple of 0.9, future unemployment taxes payable must be reduced by all amounts above 0.9. The amount of tax reduction for any taxpaying employer is the same percentage of the total amount above 0.9 as the percentage of taxes paid by nonmaximum experience rated employers for the prior calendar year.new text end

new text begin(b) This subdivision only applies if the balance in the trust fund on December 31 is four percent or more above the average high cost multiple of 0.9.new text end

new text begin(c) For the purposes of this subdivision, "average high cost multiple" has the same meaning as given in Code of Federal Regulations, title 20, section 606.3, as amended through the effective date of this section.new text end

new text begin(d) This subdivision does not apply to employers that are at the maximum experience rating for the calendar year, nor to high experience rating industry employers under section 268.051, subdivision 5, paragraph (b). Computations under paragraph (a) are not subject to the rounding requirement of section 268.034. The refund provisions of section 268.057, subdivision 7, do not apply. Computations under paragraph (a) are based upon taxes paid on or before February 15 of the calendar year.new text end

new text begin(e) The unemployment tax reduction under this subdivision applies to taxes paid between March 1 and December 15 of the year following the December 31 calculation under paragraph (a).new text end

Sec. 6.

Subd. 7.

Tax rate buydown.

(a) Any taxpaying employer that has been assigned a tax rate based upon an experience rating, and has no amounts past due under this chapter, may, upon the payment of an amount equivalent to any portion or all of the unemployment benefits used in computing the experience rating plus a surcharge of 25 percent, obtain a cancellation of unemployment benefits used equal to the payment made, less the surcharge. The payment is applied to the most recent unemployment benefits paid that are used in computing the experience rating. Upon the payment, the commissioner must compute a new experience rating for the employer, and compute a new tax rate.

(b) Payments for a tax rate buydown may be made only by electronic payment and must be received within 120 calendar days from the beginning of the calendar year for which the tax rate is effective.

deleted text begin(c) For calendar years 2011, 2012, and 2013, the surcharge of 25 percent provided for in paragraph (a) does not apply.deleted text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 2, 2015.new text end

Sec. 7.

Subd. 2.

Benefit account requirements.

(a) Unless paragraph (b) applies, to establish a benefit account an applicant must have total wage credits in the applicant's four quarter base period of at leastdeleted text begin: (1) $2,400; or (2)deleted text end 5.3 percent of the state's average annual wage rounded down to the next lower $100deleted text begin, whichever is higherdeleted text end.

(b) To establish a new benefit account deleted text beginwithin 52 calendar weeksdeleted text end following the expiration of the benefit year on a prior benefit account, an applicant must have performed deleted text beginservicesdeleted text endnew text begin actual worknew text end in new text beginsubsequent new text endcovered employment and have been paid wages in one or more completed calendar quarters that started after the effective date of the prior benefit account. The wages paid for deleted text beginthose servicesdeleted text endnew text begin that employmentnew text end must be at least enough to meet the requirements of paragraph (a). A benefit account under this paragraph may not be established effective earlier than the Sunday following the end of the most recent completed calendar quarter in which the requirements of paragraph (a) were met. deleted text beginOne of the reasons for this paragraph is to preventdeleted text end An applicant deleted text beginfrom establishingdeleted text endnew text begin may not establishnew text end a second benefit account as a result of one loss of employment.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 2, 2015, except the amendment striking "within 52 calendar weeks" is effective the day following final enactment.new text end

Sec. 8.

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for unemployment benefits is effective the Sunday of the calendar week that the application was filed. An application for unemployment benefits may be backdated one calendar week before the Sunday of the week the application was actually filed if the applicant requests the backdating at the time the application is filed. An application may be backdated only if the applicant was unemployed during the period of the backdating. If an individual attempted to file an application for unemployment benefits, but was prevented from filing an application by the department, the application is effective the Sunday of the calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the application for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit account; and

(2) a new application for unemployment benefits is filed and a new benefit account is established at the time of the withdrawal.

A determination or amended determination of eligibility or ineligibility issued under section 268.101, that was sent before the withdrawal of the benefit account, remains in effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday following the expiration of the benefit year on a prior benefit account. Except as allowed under paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks.new text begin This paragraph applies to benefit accounts established under any federal law or the law of any other state.new text end

(4) the applicant was available for suitable employment as defined in subdivision 15. The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the applicant is unavailable for suitable employment. This clause does not apply to an applicant who is in reemployment assistance training, or each day the applicant is on jury duty or serving as an election judge;

(5) the applicant was actively seeking suitable employment as defined in subdivision 16. This clause does not apply to an applicant who is in reemployment assistance training or who was on jury duty throughout the week;

(6) the applicant has served a nonpayable period of one week that the applicant is otherwise entitled to some amount of unemployment benefits. This clause does not apply if the applicant would have been entitled to federal disaster unemployment assistance because of a disaster in Minnesota, but for the applicant's establishment of a benefit account under section 268.07; and